What is the deadline for either party to give notice to terminate the cash pooling agreement with Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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(A Wholly Owned Subsidiary of Berkshire Hathaway Inc.) Notes to Consolidated Financial Statements
In thousands
1. NATURE OF BUSINESS
International Dairy Queen, Inc. (the "Company") is a wholly owned subsidiary of Berkshire Hathaway Inc. ("Berkshire"). The Company is engaged in developing, licensing, franchising, and servicing a system of approximately 7,700 retail restaurants featuring over-the-counter sales of dairy desserts, food, and blended fruit drinks. On December 31, 2024 and 2023, the Company operated two Dairy Queen restaurants.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation—The consolidated financial statements were prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America and incl
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, the cash pooling agreement between Dq Treat and BH Finance LLC automatically renews on December 31st of each year. To prevent automatic renewal, either party must provide written notice to the other at least ninety days prior to the renewal date.
This means that the deadline for providing notice to terminate the agreement is October 2nd of each year (90 days before December 31st). If notice is given by this date, the agreement will not renew for the following year. If either party misses this deadline, the agreement will automatically renew for another term.
It's important to note that if either party terminates the agreement, all outstanding amounts must be repaid. This includes any cash borrowed by Dq Treat from BH Finance, as well as any amounts owed by BH Finance to Dq Treat. Franchisees should be aware of these financial implications when considering the cash pooling agreement.