When is the balance of the initial franchise fee due for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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Initial Franchise Fee
You must pay ADQ a $25,000 initial franchise fee for a single franchise, the first $10,000 of which is a non-refundable deposit due when you submit a franchise application, which is included in this disclosure document as Exhibit D. The balance of the initial franchise fee is due when ADQ approves the franchise application and issues a written consent letter. You do not pay an initial franchise fee if you are a conversion franchisee, an existing franchisee relocating a restaurant under ADQ's relocation policy, or an existing Orange Julius® franchisee converting an Orange Julius® location to a DQ® Treat location.
The initial $10,000 deposit is not refundable and the balance of the initial franchise fee is refundable only in the following instances: (1) if you withdraw your application after ADQ has approved it but before you commence construction; (2) if your required training attendees fail to successfully complete the training program and your approval is cancelled (see Item 11 for information on required training attendees); (3) if your site is not designated and ADQ does not consent to the site within 90 days after the date ADQ approves your application; or (4) if you have not commenced construction within 180 days from the franchise agreement effective date. In these instances, ADQ has the right to cancel any agreements that have been sign
Source: Item 5 — Initial Fees (FDD pages 19–20)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, the initial franchise fee for a single franchise is $25,000. When submitting a franchise application, a non-refundable deposit of $10,000 is due. The remaining balance of the initial franchise fee is due when ADQ approves the franchise application and issues a written consent letter.
However, there are exceptions where you do not have to pay an initial franchise fee. These exceptions include if you are a conversion franchisee, an existing franchisee relocating a restaurant under ADQ's relocation policy, or an existing Orange Julius franchisee converting an Orange Julius location to a DQ Treat location.
It's important to note that the initial $10,000 deposit is non-refundable, but the balance of the initial franchise fee is refundable under specific conditions. These conditions include withdrawing your application after ADQ approval but before construction, failure of required training attendees, failure to designate a site within 90 days of application approval, or failure to commence construction within 180 days of the franchise agreement's effective date.