What is the condition of the assets when the appraiser values the Dq Treat restaurant for purchase?

According to Dq Treat's 2025 Franchise Disclosure Document, when the company exercises its purchase option, 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. The appraiser will designate a price for each category of asset, such as land, building, equipment, and fixtures, but not goodwill.

This means that the appraisal will assess the value of the Dq Treat restaurant's assets as if they were still being used to operate a Dq Treat franchise. The valuation will focus on the tangible assets necessary for running the business, rather than the intangible value of the brand or customer loyalty (goodwill).

For a prospective franchisee, this is important because it clarifies how the assets of the restaurant will be valued if Dq Treat decides to purchase the restaurant. It ensures that the franchisee will receive a fair market value for the tangible assets, based on their use in operating a Dq Treat restaurant. However, the franchisee will not be compensated for the brand recognition or customer base they may have built.