In the context of the Dq Treat franchise agreement, what construction consultation services does American Dairy Queen Corporation (ADQ) provide to the Licensee?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
American Dairy Queen Corporation ("ADQ") shall provide construction consultation services to Licensee
EXHIBIT A
CONSTRUCTION CONSULTATION SERVICES AGREEMENT
THE SERVICES PROVIDED ARE AS FOLLOWS:
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- Consult with the Licensee in the plan review process and with state and local regulatory agencies relevant to compliance with building, health and fire codes. It is the Licensee's sole responsibility to ensure that the plans conform to all state and local codes. (Construction plans and specifications provided by ADQ are design intent drawings based on Minnesota state codes.) (Site-specific changes will need to be made to the plans by the local architect hired by the Licensee).
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- Review availability of utilities (i.e. gas, electricity, sewer and water) to the site/space with the Licensee. Freestanding locations may require, at ADQ's discretion, an on-site visit relative to building location, ingress, egress, sign locations, parking and landscape requirements.
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- Review construction bids with the Licensee and consult with the Licensee in selecting a general contractor for the project, consider
4. Acknowledgment: The undersigned acknowledges that ADQ's obligation under this agreement shall be limited to providing construction consultation services in concert with the project's selected general contractor and architect for the construction of, and installation of equipment, in the restaurant. ADQ is not responsible for the actual construction of the restaurant, installation of equipment therein, delays in construction, construction or architectural errors or omissions, cost overruns, change orders or any consequential costs, expenses, injuries or damages arising out of or relating to any of those events or conditions, or to the actual construction of, or installation of equipment in the restaurant. ADQ will not provide construction consultation services on projects that are not under contract with, and
5. Additional Billing: If ADQ's construction consultant must be on site for purposes of consulting longer than specified in Exhibit "A" due to delays or complications beyond the control of ADQ, the Licensee agrees to pay ADQ an additional sum of $200.00 per day for each day the construction consultant is available on site. Should the construction consultant have to make a return visit, related travel expenses, including, but not limited to, air travel, meals and lodging, will be added to the daily $200.00 fee.
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, American Dairy Queen Corporation (ADQ) provides construction consultation services to licensees, but these services are explicitly limited. ADQ's role is to provide consultation in concert with the project's general contractor and architect, focusing on the construction and equipment installation.
Specifically, ADQ will consult with the licensee during the plan review process and with state and local regulatory agencies regarding building, health, and fire codes. However, it's the licensee's responsibility to ensure the plans comply with all state and local codes. ADQ will also review the availability of utilities like gas, electricity, sewer, and water with the licensee. For freestanding locations, ADQ may conduct an on-site visit to assess building location, access, signage, parking, and landscaping. Furthermore, ADQ will review construction bids and consult with the licensee on selecting a general contractor.
It is important to note that ADQ is not responsible for the actual construction, equipment installation, construction delays, errors, omissions, cost overruns, or ensuring compliance with building standards and legal requirements. The scope of ADQ's services is limited to what is described in Exhibit A of the agreement and does not constitute a "turn-key" service. If ADQ's construction consultant is required on-site longer than specified in Exhibit A due to delays outside of ADQ's control, the licensee will be charged an additional $200 per day, plus travel expenses for return visits.