How are amounts owed to Dq Treat from BH Finance LLC classified?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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(A Wholly Owned Subsidiary of Berkshire Hathaway Inc.) Notes to Consolidated Financial Statements
In thousands
1. NATURE OF BUSINESS
International Dairy Queen, Inc. (the "Company") is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire"). The Company is engaged in developing, licensing, franchising, and servicing a system of approximately 7,700 retail restaurants featuring over-the-counter sales of dairy desserts, food, and blended fruit drinks. On December 31, 2024 and 2023, the Company operated two Dairy Queen restaurants.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation—The consolidated financial statements were prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America and incl
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, amounts owed to Dq Treat from BH Finance LLC are classified as "cash pooling receivable from affiliate." This classification arises from Dq Treat's participation in a centralized cash management program with BH Finance, a wholly-owned subsidiary of Berkshire.
This cash management program allows Dq Treat to engage in day-to-day cash borrowing and investment activities with BH Finance. The agreement stipulates that Dq Treat's borrowing is capped at $10 million, while there is no limit on the amounts Dq Treat can invest with BH Finance. Interest rates on loans to Dq Treat are based on the one-month SOFR rate, while interest rates on loans from Dq Treat to BH Finance are determined by BH Finance.
The agreement between Dq Treat and BH Finance automatically renews annually on December 31 unless either party provides a 90-day notice of termination. In the event of termination, all outstanding amounts must be repaid. The classification of these amounts as "cash pooling receivable from affiliate" reflects the nature of the transactions as part of this centralized cash management program.