Can a DMA request an audit of its activities for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The accounting for the funds used for DQ® national and DMA activities and materials are reviewed by an independent national accounting firm on an annual basis. This "review" consists principally of applying analytical procedures to the financial data and of making inquiries of persons responsible for financial and accounting matters. ADQ currently makes available to DQ® franchisees a copy of the annually prepared statements of contributions, expenditures and balance for the national (NMF), DMA (consolidated) and individual DMA in which your restaurant is located along with the Independent Accountants' Review Report. In addition, each DMA can request that an audit of its DMA activities be conducted at the expense of that DMA.
Source: Item 11 — UItem 11U***:** U**Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 37–47)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, each DMA (Designated Market Area) has the option to request an audit of its activities. This audit would be conducted at the DMA's expense.
ADQ (American Dairy Queen) provides franchisees with an annual statement of contributions, expenditures, and balances for the national marketing fund (NMF), consolidated DMA activities, and the individual DMA in which the restaurant is located. This statement is accompanied by an Independent Accountants' Review Report. The annual review of funds used for DQ national and DMA activities is performed by an independent national accounting firm.
This arrangement allows Dq Treat franchisees a degree of oversight and accountability regarding the sales promotion fees they contribute, particularly at the DMA level. While ADQ has the sole right to determine how sales promotion program fees are spent, the ability for a DMA to request an audit provides a mechanism for franchisees to gain deeper insight into how their DMA's funds are being utilized. Prospective franchisees should consider this audit option as a potential tool for ensuring transparency and responsible use of marketing funds within their specific DMA.