When are building, construction and leasehold improvement costs due for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount for Captive- Venue Location(1) P | Amount for Street Location(1) P | Method of Payment | When Due | To Whom Payment Is to Be Made(2) P |
|---|---|---|---|---|---|
| Building, Construction and Leasehold Improvements(6) P | $235,000 - $470,000 | $390,000 - $870,000 | As Incurred | Prior to opening | Landlord, third party suppliers and contractors |
Source: Item 7 — Estimated Initial Investment (FDD pages 24–29)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the costs for building, construction, and leasehold improvements are due as incurred, prior to opening the franchise. These costs are paid to the landlord, third-party suppliers, and contractors. For a Captive-Venue location, these costs range from $235,000 to $470,000, while for a Street location, they range from $390,000 to $870,000.
The initial investment for leasehold improvements will vary depending on factors such as local labor costs, anticipated traffic through the store, and the condition of the building. The costs can also vary based on whether the building is a completed structure ready for fixtures and equipment or if construction is still in progress. These factors influence how obligations are distributed between the landlord and tenant under different lease agreements, as well as the overall costs of acquisition and construction.
Prospective franchisees should note that Dq Treat requires approval of all leasehold improvements, including graphics and signage for the storefront, before construction begins. Franchisees should carefully consider these costs and payment terms when planning their initial investment. It is also important to consult with a business advisor to review these amounts and understand the potential financial obligations.