Who bears the expense of removing or obliterating Dq Treat signage after termination?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2 Stop Using Trademarks.
- (A) Licensee must immediately stop using and displaying the Trademarks and any point-of-sale materials and other sales promotion and advertising materials furnished, made available or approved by Company, and must stop using Company's Confidential Information (including the Operations Manual). Licensee must immediately return to Company all copies of the Operations Manual and any other Confidential Information in Licensee's possession or control, or previously disseminated to Licensee's employees.
- (B) Subject to section 14.5, Licensee must, within 20 days, at Licensee's expense, remove or obliterate all Restaurant signage, displays, photos and other materials in Licensee's possession at the Authorized Location or elsewhere that bear any of the Trademarks or names or material confusingly similar to the Trademarks. Licensee must also, within 20 days, alter the appearance of the Restaurant, including removal or substantial modification of any trade dress, so as to differentiate the Restaurant unmistakably from duly licensed restaurants and stores identified by the Trademarks.
- (C) If Licensee does not comply with section 14.2(B) within 20 days, Company may enter the Authorized Location and remove all Restaurant signage, displays, photos or any other materials in Licensee's possession at the Authorized Location or elsewhere that bear any of the Trademarks or names or material confusingly similar to the Trademarks, and Licensee must reimburse Company for Company's costs incurred in connection with this removal.
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 the 2025 Dq Treat Franchise Disclosure Document, the franchisee is responsible for the expenses associated with removing or obliterating all Restaurant signage, displays, photos, and other materials bearing Dq Treat's trademarks after the termination of the franchise agreement.
Specifically, the franchisee has 20 days to remove or obliterate all Restaurant signage, displays, photos, and other materials in their possession at the Authorized Location or elsewhere that bear any of the Trademarks or names or material confusingly similar to the Trademarks. The franchisee must also, within 20 days, alter the appearance of the Restaurant, including removal or substantial modification of any trade dress, so as to differentiate the Restaurant unmistakably from duly licensed restaurants and stores identified by the Trademarks.
If the franchisee fails to comply within the 20-day period, Dq Treat has the right to enter the Authorized Location and remove the signage and other materials. In this case, the franchisee is obligated to reimburse Dq Treat for all costs incurred during the removal process. This provision ensures that the Dq Treat brand is protected and that terminated locations do not continue to represent themselves as active franchises.