In what capacity does the Franchise Advisory Council (FAC) advise ADQ for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise advisory council ("FAC") advises ADQ on marketing, advertising and other matters, but solely in an advisory capacity. As of the date of this disclosure document, the FAC is comprised of members that are chosen or elected in the following manner: (1) DMA chairpersons (elected by franchisees) from each of ten U.S. regions elect one DMA chairperson to serve as the region's representative on the FAC; (2) the Canadian Franchise Advisory Council ("CFAC"), elected by Canadian franchisees, selects two representatives from the CFAC to represent the east and west regions of Canada; and (3) the Dairy Queen Territory Operator Organization ("DQTOO") or the DQTOO board, elected by territory operators, chooses two territory operator representatives. ADQ
reserves the right to appoint two "at large" franchisee members to the FAC. Further, ADQ reserves the right to form committees that will work with the FAC at any time on any matter. ADQ has the power to form, change, or dissolve the FAC or any of its committees, and has the right to change how franchisee membership on the FAC or any committee is determined.
Source: Item 11 — UItem 11U***:** U**Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 37–47)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the Franchise Advisory Council (FAC) serves in an advisory role to ADQ (American Dairy Queen Corporation) on matters related to marketing, advertising, and other relevant issues. The FAC's role is strictly advisory, meaning that while they provide input and recommendations, ADQ is not obligated to follow their advice. This council is composed of franchisees selected through different methods. DMA (Designated Market Area) chairpersons, elected by franchisees from ten U.S. regions, choose one DMA chairperson to represent their region on the FAC. Additionally, the Canadian Franchise Advisory Council (CFAC), elected by Canadian franchisees, selects two representatives from the east and west regions of Canada. The Dairy Queen Territory Operator Organization (DQTOO), elected by territory operators, also selects two territory operator representatives. ADQ also reserves the right to appoint two additional franchisee members to the FAC.
ADQ retains significant control over the FAC. They can form committees to work with the FAC on specific matters and have the authority to modify or dissolve the FAC or its committees. ADQ also has the right to change how franchisee membership on the FAC or any committee is determined. This structure indicates that while Dq Treat franchisees have a voice through the FAC, ADQ ultimately makes the final decisions on marketing, advertising, and other operational matters.
For a prospective Dq Treat franchisee, this means that while there is a mechanism for franchisee input, the franchisor has the final say. Franchisees should understand that the FAC's influence is limited to an advisory capacity, and ADQ can change the FAC's structure and membership at its discretion. This is a fairly common arrangement in franchising, where franchisors often seek franchisee input but maintain control over key decisions to ensure brand consistency and operational standards across the system.