When does the cash pooling agreement between Dq Treat and BH Finance LLC automatically renew?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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(A Wholly Owned Subsidiary of Berkshire Hathaway Inc.) Notes to Consolidated Financial Statements
In thousands
1. NATURE OF BUSINESS
International Dairy Queen, Inc. (the "Company") is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire"). The Company is engaged in developing, licensing, franchising, and servicing a system of approximately 7,700 retail restaurants featuring over-the-counter sales of dairy desserts, food, and blended fruit drinks. On December 31, 2024 and 2023, the Company operated two Dairy Queen restaurants.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation—The consolidated financial statements were prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America and incl
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 Dq Treat's 2025 Franchise Disclosure Document, the company participates in a centralized cash management program, also known as cash pooling, with BH Finance LLC. BH Finance LLC is identified as a wholly-owned subsidiary of Berkshire. The agreement allows Dq Treat to borrow cash on a day-to-day basis, but this borrowing is capped at $10 million. There is no limit, however, on the amount Dq Treat can invest with BH Finance.
Loans made to Dq Treat by BH Finance accrue interest at the one-month SOFR rate. Conversely, loans made by Dq Treat to BH Finance accrue interest at a rate determined by BH Finance. The amounts owed to Dq Treat are classified as cash pooling receivable from affiliate on the company's financial statements.
The cash pooling agreement between Dq Treat and BH Finance LLC automatically renews on December 31 of each year. However, either party can prevent the automatic renewal by providing a notice to the other party at least ninety days prior to the renewal date. If such notice is given, all outstanding amounts must be repaid.