In the event of a proposed transfer of a Dq Treat license, what documents must the licensee provide to the company?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
on form and provide Company with a complete application for consent to transfer at least 90 days before the effective date of the transfer. The transfer request and release of information form and application must be completed on Company's then-current forms and accompanied by all other documents required by Company.
(B) Right of First Refusal.
(1) Offer. In the event of a proposed transfer, Licensee must give Company a copy of the purchase agreement or other written statement with the terms of the offer, signed by both the offeror and Licensee, along with such additional information concerning the transaction as Company may reasonably require, which may include a copy of the lease, financial information, tax returns and other documents typically provided to a buyer. Company has the right (at its option, upon written notice to Licensee) to assign to a third party Company's right of first refusal.
- (2) Insolvency. If the proposed transfer results from Licensee's insolvency or the filing of any petition by or against Licensee under a bankruptcy or insolvency law ("bankruptcy"), Licensee must first offer to sell to Company Licensee's interest in this agreement and the land, building, equipment, furniture and fixtures, and leasehold interest used in the operation of Licensee's Restaurant ("bankruptcy assets"). The purchase price of the bankruptcy assets will be established by a qualified appraiser selected by the parties.
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 Dq Treat's 2025 Franchise Disclosure Document, if a licensee proposes to transfer their license, they must provide Dq Treat with a copy of the purchase agreement or other written statement that includes the terms of the offer. This document must be signed by both the offeror and the licensee.
Additionally, the licensee must provide any other information concerning the transaction that Dq Treat may reasonably require. This may include a copy of the lease, financial information, tax returns, and other documents typically provided to a buyer. This comprehensive information allows Dq Treat to fully evaluate the proposed transfer and the potential transferee.
In the event the proposed transfer results from the licensee's insolvency or bankruptcy, the licensee must first offer to sell their interest in the agreement, as well as the land, building, equipment, furniture, fixtures, and leasehold interest used in the operation of the restaurant to Dq Treat. A qualified appraiser selected by both parties will establish the purchase price of these bankruptcy assets. If the parties cannot agree on an appraiser, a judge of the United States District Court in the Authorized Location’s state will appoint one. The licensee or their legal representative must then deliver a written statement incorporating the appraiser's report to Dq Treat.