What is the condition under which transfer fees are collectable for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.5 Transfer Void. Any attempted transfer by Licensee without Company's prior written consent or otherwise not in compliance with the terms of this agreement is void and gives Company the right at its option to either default and terminate this agreement, or to consent to the transfer and collect from Licensee and the guarantors a transfer fee equal to two times the transfer fee provided for in section 11.3(E)(1).
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 FDD, a transfer fee is collected from the licensee under specific conditions related to the transfer of the franchise. If a licensee attempts to transfer the franchise without prior written consent from Dq Treat, or if the transfer does not comply with the terms of the agreement, the transfer is considered void.
In such cases, Dq Treat has the option to either terminate the agreement due to default or to consent to the transfer. If Dq Treat chooses to consent to the transfer despite the non-compliance, the company will collect from the licensee and the guarantors a transfer fee equal to two times the standard transfer fee outlined in section 11.3(E)(1) of the agreement.
This condition highlights the importance of adhering to the outlined transfer procedures and obtaining proper consent from Dq Treat before proceeding with any transfer of the franchise. Failure to do so can result in additional fees or even termination of the franchise agreement. This is a fairly standard clause in most franchise agreements, designed to ensure that transfers are conducted in accordance with the franchisor's standards and with qualified new operators.