What is the Credit Application for a Dq Treat franchise used for?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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You must include the initial franchise fee when you submit this application to Company.
- The initial franchise fee for a DQ Grill & Chill or DQ Texas Restaurant is $45,000 and the initial franchise fee for a DQ Treat Store and all other concepts is $25,000.
- The initial fee must be paid by wire transfer in two installments as follows:
- o A non-refundable deposit of $10,000 due when you submit the franchise application; and
- o The balance of the initial franchise fee due within 10 days after ADQ approves the application and issues a written consent letter.
The initial franchise fee is refundable only as described in Item 5 of the FDD.
Background and Patriot Check
As part of the application to become a franchisee, each person who has an ownership interest in the franchise or franchise business entity must submit a signed consent form allowing Company to perform a Criminal Background and Patriot Check, which is done by a third-party vendor. The background check will include certain checks mandated by the federal government through the Patriot Act legislation. Also, any person whose financials are being submitted to gain financial approval must submit to the Background and Patriot Checks. Once the DQ® Application has been submitted, each applicant will receive an email from our third-party vendor, Trusted Employees, containing log-in access to their website to complete the information needed to run the background and patriot checks. To avoid delays in the development process, once the applicant receives the log-in access, please submit the information as soon as possible as the link provided in the email is only valid for 14 days.
Restaurant Opening Timeline Considerations
Company support of your proposed project is focused on maintaining an efficient timeline from acceptance of your application through opening. If you are applying for a DQ Grill & Chill franchise and your application is approved, you may be eligible to participate in the Timeline Incentive Program, which provides an incentive for you to open your restaurant within the planned timeline.
Lender Capabilities and Requirements:
You are solely responsible for identifying and gaining commitment from a lender that enables you to manage your project within the opening timeline requirements as stated in the consent letter if consent is granted (i.e. SBA preferred and express lenders and providers with the ability to expedite lending). Company has no obligation to assist you with financing and will not adjust timelines based on your inability to timely secure appropriate financing.
Feasibility Information and Requirements:
Prior to consent, you will be required to secure feasibility information to assess necessary design and governmental approval requirements. The reliability and accuracy of the information you provide us could directly impact your project's required opening timeline. Therefore, it is essential that you provide us with reliable and accurate information on feasibility prior to consent. Company has no obligation to adjust timelines based upon your inability to timely secure any necessary design or governmental approvals.
Company may, but is not obligated to, obtain a site investigation report ("SIR") for your proposed project, which may include information related to zoning, permitting, parking and loading, signage, environmental, traffic and roadway, utility and other site related requirements, restrictions and
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processes. If Company obtains an SIR for your project, it is doing so for its own information and purposes. Company may, but it is not obligated to, share the SIR or certain information from the SIR with you. If Company does share the information with you, you understand and agree that the information is not a substitute for you doing your own research and due diligence on the site and project, that Company makes no warranties or guaranties that the information in the SIR is accurate or complete, and that you should not rely on the information in the SIR in determining whether to move forward with the project.
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)
Based on the 2025 FDD, the Dq Treat franchise application involves several components related to applicant qualification and financial standing. As part of the application, Dq Treat requires each person with an ownership interest to submit a signed consent form for a Criminal Background and Patriot Check conducted by a third-party vendor. This check includes reviews mandated by federal legislation. Additionally, anyone whose financial information is used for financial approval must also undergo these checks.
The Dq Treat application also requires a restaurant management plan to clearly identify all individuals involved in the proposed franchise, outlining their qualifications, roles, and responsibilities. This plan includes details about the principals' professional backgrounds, their skills and experience, their specific duties, and the makeup of the management team, including résumés for each person. The plan also identifies who within the management team holds equity interest and who will attend the company training program.
Furthermore, the FDD states that the Development Review Committee (DRC) reviews the franchise application, including the applicants' personal and financial background, proposed ownership and management structure, and participation in a discovery day at the company's Franchisee Support Center. The financial qualification includes minimum requirements for liquid assets and the amount of equity to be invested in the development of a single, new location. The initial franchise fee for a Dq Treat store is $25,000, with a non-refundable deposit of $10,000 due upon submission of the application and the balance due within 10 days after ADQ approves the application.