What is the exception to the requirement for written consent to assign the agreement for a Dq Treat location?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Participating Location or PAR may assign or transfer the Sales Order/Purchase Order and/or Terms or any interest therein to a third party, without prior written consent of the other party, which shall not be unreasonably withheld; provided, however, the Sales Order/Purchase Order and/or Terms may be assigned as part of a merger, or sale of all or substantially all of the business or assets, of a party.
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, generally, a Participating Location or PAR (ParTech, Inc.) needs prior written consent from the other party to assign or transfer the Sales Order/Purchase Order and/or Terms or any interest within to a third party. However, there is an exception to this rule.
The exception is that the Sales Order/Purchase Order and/or Terms can be assigned as part of a merger, or sale of all or substantially all of the business or assets, of a party. This means that if a Dq Treat franchisee sells their entire business or merges with another entity, the assignment can occur without needing to obtain written consent.
This exception provides flexibility for Dq Treat franchisees in the event of significant business changes like a merger or acquisition. It streamlines the process by removing the requirement to seek consent, which could potentially delay or complicate such transactions. However, it's important to note that this exception only applies to the specific scenarios of a merger or sale of substantially all assets; in other situations, written consent is still required.