By what date must a Dq Treat licensee complete the modernization required under the expired agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Authorized Location: | |
|---|---|
| RENEWAL ADDENDUM TO DQ® TREAT OPERATING AGREEMENT is Addendum to DQ® treat operating agreement ("Agreement") is between American arry Queen Corporation ("Company") and ("Licensee"). Background • Company and Licensee signed a franchise agreement dated that expires on("Expired Agreement"). • Licensee wants to renew the franchise for the Authorized Location under the Agreement, except that Company and Licensee want to modify the Agreement. | |
| Th | erefore, the parties agree as follows. |
| 1. | Modernization Date. Licensee must complete the modernization required under the Expired Agreement by the earlier of or any transfer under the Agreement. This paragraph 1 does not change the modernization requirements under the Agreement. |
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, a licensee must complete the modernization required under the expired agreement by the earlier of two dates. The first date is a blank field, and the second date is any transfer under the agreement. It is important to note that this requirement does not change the modernization requirements under the agreement.
This means that if a Dq Treat franchisee is renewing their agreement, they need to ensure that any modernization requirements from their previous agreement are fulfilled by the earlier of the two dates. This could involve updating the store's appearance, equipment, or technology to meet current Dq Treat standards.
The franchisee should carefully review their expired agreement and discuss with Dq Treat to determine the specific modernization requirements and the exact deadline for completion, as the first date is not specified in the agreement. Failure to complete the modernization on time could potentially impact the renewal or transfer of the franchise agreement.
It is also important to note that if the licensee is transferring the agreement, they must complete any outstanding repairs, maintenance, and modernization requirements before the transfer's effective date. If a modernization was completed within the past 10 years, the transferee will be required to complete the next modernization by the date the licensee would have been required to modernize under the agreement.