What are the conditions that must be met for a Dq Treat franchisee to relocate their store?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
When you enter into a franchise agreement, you are granted the right to operate a single store at an authorized location that ADQ has consented to in writing. You are not granted any minimum area or territory. If you must relocate because the franchised premises are condemned, exercise of a relocation right by your landlord, or some other reason that ADQ approves, you may relocate on the following conditions: (1) the new location must be acceptable to ADQ, reasonably suited for a DQ® Treat location, consistent with ADQ's site selection guidelines, and within the same building or venue as the authorized location if a Captive-venue location, or within a 500 meter radius of the authorized location if a Street location; (2) the new site must not infringe on the rights of any other DQ® franchisee; (3) the new store must be under construction within 30 days if a Captive-venue location or 180 days if a Street location; (4) after construction commences, the new store must be open and operating within 90 days if a Captive-venue location or 120 days if a Street location; and (5) the new store must be constructed and equipped in accordance with ADQ's then current standards and specifications.
ADQ has a relocation policy that permits qualifying franchisees with a Street location that sign a new franchise agreement and the relocation addendum to relocate a store within two miles of the current store location, provided the location is of the same type. For instance, a Street location outside of a mall cannot relocate within a mall. The timeframes detailed in the paragraph above apply to this relocation policy. Relocating franchisees do not need to pay an initial franchise fee, although relocating franchisees must meet the then-current training requirements (including payment of any fees and/or costs) and must purchase construction consultation services and prototype building plans (if the location is freestanding). See Item 7 for more information on these costs. Relocating franchisees may pay reduced continuing license fees and sales promotion program fees, depending on the circumstances. See Item 6 for more information. The relocation policy is subject to ADQ's prior written consent and the other relocation standards contained in the franchise agreement and any applicable lease (see Item 9). The relocation policy does not apply to non-system food or Captive-venue locations.
Source: Item 12 — UItem 12U***:** U**Territory (FDD pages 47–49)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, a franchisee may be able to relocate their store if the franchised premises are condemned, the landlord exercises a relocation right, or for another reason that ADQ approves. To relocate, the new location must be acceptable to ADQ and reasonably suited for a DQ® Treat location, consistent with ADQ's site selection guidelines. For Captive-venue locations, the new site must be within the same building or venue as the authorized location. For Street locations, the new site must be within a 500-meter radius of the authorized location. The new site also cannot infringe on the rights of any other DQ® franchisee.
Construction of the new store must begin within 30 days for Captive-venue locations or 180 days for Street locations. After construction begins, the new store must be open and operating within 90 days for Captive-venue locations or 120 days for Street locations. The new store must be constructed and equipped according to ADQ's current standards and specifications.
ADQ also has a relocation policy that allows qualifying franchisees with a Street location to relocate a store within two miles of the current store location if they sign a new franchise agreement and a relocation addendum, provided the location is of the same type (e.g., a Street location outside of a mall cannot relocate within a mall). Relocating franchisees do not need to pay an initial franchise fee but must meet the current training requirements and purchase construction consultation services and prototype building plans if the location is freestanding. Relocating franchisees may also pay reduced continuing license fees and sales promotion program fees, depending on the circumstances. This relocation policy is subject to ADQ's prior written consent and other relocation standards in the franchise agreement and any applicable lease and does not apply to non-system food or Captive-venue locations.