Does the Dq Treat company need the licensee's consent to select the appraiser?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
14.5 Purchase Option. Company may purchase or designate a third party to purchase any or all of the assets of the Restaurant that are owned by Licensee or any of Licensee's affiliates including the land, building, equipment, fixtures, signage, furnishings, supplies, leasehold, leasehold improvements, and inventory of the Restaurant, upon the following conditions:
(A) Company must give Licensee written notice of its intent to exercise its purchase rights under this section 14.5 within 30 days after the date of the expiration or termination of this agreement.
(B) The purchase will be at a price determined by a qualified appraiser paid for by Company and selected with the consent of both parties.
The price determined by the appraiser will be the reasonable fair market value of the assets based on their continuing use in, as, and for the operation of a DQ® Treat restaurant and the appraiser will designate a price for each category of asset (e.g., land, building, equipment, fixtures, etc. but not good will).
If the parties cannot agree upon an appraiser, either party may petition a judge of the United States district court for the district in which the Authorized Location is located to appoint an appraiser.
- (C) Within 45 days after Company's receipt of the appraisal report, Company must inform Licensee if Company or Company's designee intends to purchase any or all of the assets at the price in the appraisal report.
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, Dq Treat's company does need the licensee's consent to select an appraiser under certain conditions. Specifically, this applies if Dq Treat exercises its option to purchase the assets of the restaurant upon termination or expiration of the franchise agreement.
In this scenario, Dq Treat will pay for a qualified appraiser, but the selection of that appraiser requires the consent of both Dq Treat and the licensee. The appraiser will determine the reasonable fair market value of the restaurant's assets, excluding goodwill, based on their continued use as a Dq Treat restaurant. This valuation will be broken down by asset category, such as land, building, equipment, and fixtures.
If Dq Treat and the licensee cannot agree on an appraiser, either party has the right to petition a judge of the United States district court in the district where the authorized location is situated to appoint an appraiser. This ensures a fair and impartial process for determining the value of the assets in case of disagreement. Dq Treat must then inform the licensee within 45 days of receiving the appraisal report whether it intends to purchase the assets at the appraised price.