Who is considered the 'Franchisee' in the Credit Application for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1. If you are applying for a franchise on behalf of a corporation, limited liability company, partnership or other business entity, you must complete all sections of this application and you must submit with your application copies of the following:
- a) For a corporation, the articles of incorporation, by-laws or shareholders agreement, or other documentation evidencing that the corporation has been duly formed and its ownership structure.
- b) For a limited liability company, the articles of organization, operating agreement, or other documentation evidencing that the company has been duly formed and its ownership structure.
- c) For a partnership, the partnership agreement.
- 2. If you are applying to hold the franchise as an individual, you must complete all sections of this application, except for Section II.
- 3. Please be advised that, when forming a corporation, limited liability company, legal partnership or operating company, you must not use DQ Grill & Chill®, Dairy Queen®, DQ®, Blizzard® Orange Julius®, or any other trademarks of IDQ Companies or its subsidiaries in your business name, as it constitutes an improper use of our trademarks and avoids the cost of having to change the name at a later date.
SECTION II BUSINESS ENTITY INFORMATION (to be completed if applying on behalf of a business entity)
If you are applying on behalf of, and desire to hold a franchise through, a business entity (corporation, limited liability company or partnership), you must complete this Section II on behalf of the business entity, and each shareholder, member or partner must complete Section III of this Application. All shareholders, members or partners, as the case may be, must be bound by a buy-out agreement with respect to their interest in the franchise or franchisee entity.
If you desire to hold a franchise through a business entity that has yet to be formed, you should include in Section III all individuals that will have an ownership interest in the future business entity. If your application is approved, we will prepare the Operating Agreement in the names of the individual
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, the 'franchisee' in the credit application can be either an individual or a business entity. If an individual is applying, they must complete all sections of the application except for Section II, which is reserved for business entities. If the application is on behalf of a corporation, limited liability company, partnership, or other business entity, all sections of the application must be completed, and supporting documentation such as articles of incorporation, operating agreements, or partnership agreements must be submitted.
For those applying through a business entity, Section II of the application must be completed on behalf of the entity, and each shareholder, member, or partner must complete Section III. All shareholders, members, or partners must be bound by a buy-out agreement regarding their interest in the franchise or franchisee entity. If the business entity has yet to be formed, all individuals who will have an ownership interest in the future entity should be included in Section III. If the application is approved, the Operating Agreement will be prepared in the names of the individuals.
Dq Treat also specifies that when forming a business entity, applicants must not use Dq Treat's trademarks, such as DQ Grill & Chill®, Dairy Queen®, DQ®, Blizzard® Orange Julius®, or any other trademarks of IDQ Companies or its subsidiaries, in their business name. This is to avoid improper use of the trademarks and the cost of having to change the name later.