How does a Dq Treat conversion franchisee pay the sales promotion program fee?

According to Dq Treat's 2025 Franchise Disclosure Document, the specific payment details for the sales promotion program fee for conversion franchisees are outlined in the applicable conversion addendum, which is included as Exhibit C to the FDD. This means that the standard sales promotion fee structure, which involves paying up to 6% of Gross Sales on Orange Julius® branded products and 5% - 6% of Gross Sales on all other products, may not apply directly to conversion franchisees. Instead, the conversion addendum will specify the exact fees and payment terms that a conversion franchisee must follow.

This approach allows Dq Treat to tailor the financial obligations to the unique circumstances of franchisees who are converting existing businesses into Dq Treat locations. The fees might be adjusted based on factors such as the existing business's sales volume, product mix, or market conditions. By referring to Exhibit C, prospective conversion franchisees can understand their specific financial obligations related to the sales promotion program.

It is important for potential Dq Treat conversion franchisees to carefully review the conversion addendum in Exhibit C to fully understand the sales promotion program fee requirements. They should also discuss any questions or concerns with the franchisor to ensure they have a clear understanding of their financial obligations before signing the franchise agreement. This level of due diligence will help avoid any surprises and ensure a smooth transition into the Dq Treat system.