Who chooses the territory operator representatives for the FAC 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 Dairy Queen Territory Operator Organization (DQTOO) or the DQTOO board, which is elected by territory operators, chooses the two territory operator representatives for the Franchise Advisory Council (FAC). The FAC advises ADQ on marketing, advertising, and other matters in an advisory capacity.
In addition to the territory operator representatives, the FAC includes DMA chairpersons elected by franchisees from ten U.S. regions, who then elect one DMA chairperson to represent their region. The Canadian Franchise Advisory Council (CFAC), elected by Canadian franchisees, also selects two representatives from the CFAC to represent the east and west regions of Canada. ADQ also reserves the right to appoint two "at large" franchisee members to the FAC.
ADQ retains significant control over the FAC, including the power to form, change, or dissolve the FAC or any of its committees. ADQ also has the right to change how franchisee membership on the FAC or any committee is determined. This structure ensures that various franchisee perspectives are represented while also allowing ADQ to maintain ultimate authority over the council's composition and direction.
For a prospective Dq Treat franchisee, this means that territory operators have a direct say in who represents them on the FAC through their elected organization or board. However, ADQ's ability to appoint members and alter the FAC's structure highlights the franchisor's control over this advisory body.