On what basis do company-operated restaurants pay a sales promotion program fee for Dq Treat?

According to the 2025 Dq Treat FDD, company-operated restaurants pay a sales promotion program fee on the same basis as similar franchisees located in the same Designated Market Area (DMA). This means that the fees paid by company-operated restaurants are aligned with those of franchisees operating under similar conditions within the same geographic marketing region.

The sales promotion program fees are used to fund ADQ's sales promotion activities, which may include national, regional, or local initiatives. These activities are designed to increase consumer awareness, drive trial of Dq Treat products, build the customer base, increase customer visit frequency, and build the Dq Treat brand overall. The fees collected may be allocated to the national marketing fund (NMF), regional or DMA-level activities, pooled accounts for specific types of Dq Treat restaurants, or individual store-level activities. ADQ retains the right to modify how these fees are allocated and spent without prior notice to franchisees.

For franchisees, the sales promotion program fee is up to 6% of Gross Sales on Orange Julius® branded products and 5% - 6% of Gross Sales on all other products. The sales promotion program fee for Orange Julius® branded products is at 5% for Street locations and 1.25% for Captive-venue locations. The DMA system determines regional sales promotion activities based on geographic areas where consumers share similar TV viewing patterns. This system ensures that marketing efforts are tailored to specific regional audiences, and company-operated restaurants follow the same fee structure as franchisees within those regions.