What must approved products for a Dq Treat franchise meet?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
any applicable lease or sublease for the premises.
You may only use or purchase products approved by ADQ that meet ADQ's specifications. For purposes of this Item 8, "products" includes products, services, ingredients, supplies, signage, fixtures, furnishings, advertising and sales promotion materials, and equipment (including hardware and software for a computerized electronic point-of-sale ("EPOS") system or other
computer systems, communications equipment, or electronic services providers). Approved products must meet ADQ's specifications, and are manufactured, provided or prepared by ADQ approved manufacturers, suppliers or distributors. ADQ periodically identifies approved products for use in DQ® locations, and has the right to periodically change the list of approved products, and to update and alter the specifications for approved products.
ADQ always has the right to designate a single approved manufacturer, supplier or distributor for the following products: (1) soft drinks; (2) third party branded products; (3) products relating to limited time offers and special promotions; (4) equipment, including EPOS equipment and all related point-of-sale and web based software and back-office hardware and software; (5) any product you purchase where ADQ does not receive a fee or payment from the manufacturer with respect to the sale of that product, other than payments from vendors for marketing; and (6) the Orange Julius® proprietary powders and frozen orange juice concentrate.
For other products not listed in (1) - (6) above, as long as there is not in place an agreement for a "unified purchasing program," a franchisee may make written request for approval of a specific product, service or piece of equipment of an additional, qualified manufacturer, supplier or alternate distributor, pursuant to ADQ's then current policies and procedures.
ADQ has received and offered proposals to create a unified purchasing program as a joint effort between ADQ and a cooperative association of DQ® restaurant and store operators, to benefit the entire DQ® system in the United States. For any period during which there is an agreement for a unified purchasing program: (1) ADQ will designate as approved the manufacturers, suppliers or distributors properly selected within the structure of that program; and (2) ADQ has the right to designate a single approved manufacturer, supplier and/or distributor of any approved products.
ADQ has currently designated ParTech, Inc. as the sole supplier of the required EPOS hardware and software that you must purchase for your restaurant.
Source: Item 8 — UItem 8U***:** U**Restrictions on Sources of Products and Services (FDD pages 29–35)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, approved products must meet ADQ's (American Dairy Queen's) specifications and be manufactured, provided, or prepared by ADQ-approved manufacturers, suppliers, or distributors. ADQ periodically identifies approved products for use in Dq Treat locations and has the right to periodically change the list of approved products and update the specifications for approved products. The term 'products' includes products, services, ingredients, supplies, signage, fixtures, furnishings, advertising and sales promotion materials, and equipment, including hardware and software for computerized electronic point-of-sale systems or other computer systems, communications equipment, or electronic services providers.
When evaluating an alternate product or manufacturer, Dq Treat uses criteria that it may change periodically. These criteria include compliance with ADQ's specifications, the ability to supply a large number of restaurants or geographic areas, and the ability of the facility to meet ADQ's requirements and accessibility for periodic evaluations. The facility may need to be certified by a Global Food Safety Initiative (GFSI) recognized scheme, depending on the product.
Additional criteria include an acceptable food defense plan, supplier specification, HACCP plan, product recall process, 24-hour contact information, and allergen control program. The manufacturer must also attend a meeting with ADQ's Research & Development staff to review specifications and related procedures and comply with other requirements that may be periodically implemented. Dq Treat may charge the evaluation cost to the franchisee or the manufacturer. The manufacturer must provide samples, product labels, and packaging for the alternate product, which will undergo evaluation to determine if it conforms to ADQ's specifications. This evaluation can take 90-180 days or significantly more, depending on various factors. Before final approval, Dq Treat may require a field and distribution test, which may take an additional 30-60 days or more.
ADQ always has the right to designate a single approved manufacturer, supplier, or distributor for specific products such as soft drinks, third-party branded products, products related to limited-time offers and special promotions, equipment (including EPOS equipment and related software), any product where ADQ does not receive a fee from the manufacturer (other than marketing payments), and the Orange Julius proprietary powders and frozen orange juice concentrate. For other products, franchisees may request approval of a specific product, service, or piece of equipment from an additional, qualified manufacturer, supplier, or alternate distributor, following ADQ's policies and procedures, provided there isn't a unified purchasing program in place.