Can a Dq Treat designated or assistant manager participate in the management of another business?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to operate your DQ® Treat franchise under your active and continuous supervision. If the franchisee is a business entity, the franchisee is required to have one owner who is responsible for overseeing the general management of the day-to-day operations of the location. If you are developing your first DQ® Treat location, you must have one designated manager and one assistant manager (ARD franchisees only need a designated manager) who have completed ADQ's training requirements in Item 11. Designated and assistant managers must personally invest their full time and attention and devote their best efforts to the on-premises general management of the day-to-day operations of the location, and meet ADQ's store or retail management experience requirements. Designated and assistant managers may not participate in the active operation or management of any other business.
You must ensure that any designated or assistant managers with access to confidential information (as defined in the franchise agreement) abide by the confidentiality obligations in the franchise agreement. Also, a designated manager cannot directly or indirectly operate, permit to be operated, or hold any interest in a competitive business.
Source: Item 15 — UItem 15U***:** U**Obligation to Participate in the Actual Operation of the Franchise Business (FDD page 51)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, designated and assistant managers are required to dedicate their full time and attention to the Dq Treat location's operations. They must devote their best efforts to the on-premises general management of the day-to-day operations.
Specifically, the FDD states that designated and assistant managers "may not participate in the active operation or management of any other business." This restriction ensures that these key personnel are fully committed to the success of the Dq Treat franchise.
Additionally, a designated manager cannot directly or indirectly operate, permit to be operated, or hold any interest in a competitive business. This prevents conflicts of interest and ensures the manager's loyalty to the Dq Treat franchise. This requirement is stricter than the restriction on assistant managers, who are only barred from active participation in other businesses, but not necessarily from holding an interest in them.