What exchange rate source is used for Dq Treat locations in Canada paying in CAD?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
oftware Services, PARPay Services, Advance Exchange Services, and On-Site Remedial Maintenance Service, as applicable, as listed above in accordance with the terms and conditions of this Sales Order and the Participation Agreement executed by Participating Location and PAR. All Sales Orders are non-cancellable by Customer. Notwithstanding the foregoing, if PAR agrees to cancel any Sales Order, PAR may condition such cancellation on Customer paying a 10% restocking fee for any Equipment or other items returned to PAR.
Price Increases: Beginning on the calendar year starting January 1, 2021 pricing is subject to an annual increase based on an amount equal to the lesser of 2% or the amount of Consumer Price Index ("CPI") increase calculated based on the immediately preceding unadjusted 12 months (10/01 through 9/30), derived from the U.S. Department of Labor, Bureau of Labor Statistics web site, https://www.bls.gov/news.release/cpi.nr0.htm. Price increases will take effect February 1 of the then current calendar year. PAR will communicate prices increases to Participating Location in writing via email by January 15th.
Exchange Rate for Participating Locations in Canada. Participating Locations in Canada who are purchasing Equipment and Installation Services via an upfront payment may elect to pay for all Equipment and Services in USD or CAD. Participating Locations in Canada who are financing Equipment and Installation Services must pay in CAD for all Equipment and Services subject to the following. The exchange rate for Participating Locations in Canada whom elect to pay in CAD will be set for the spot rate of USD/CAD by the Wall Street Journal as reported by http://www.wsj.com/public/page/news-currency-currencies-trading.html on the Effective Date of the Master Hardware and Software Agreement between ParTech, Inc. and American Dairy Queen Corporation.
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, the exchange rate for Canadian locations electing to pay in CAD for equipment and installation services is determined by the Wall Street Journal's spot rate of USD/CAD, as reported on http://www.wsj.com/public/page/news-currency-currencies-trading.html. This rate is set on the effective date of the Master Hardware and Software Agreement between ParTech, Inc. and American Dairy Queen Corporation.
The exchange rate is maintained by PAR for one year from February 1, 2019, and is revised annually thereafter. On January 1 (or the next business day) of each subsequent year, a new exchange rate is calculated based on the average spot rate over the prior calendar year (January 1 – December 31) of USD/CAD, again as reported by the Wall Street Journal on the same website. This new rate is communicated to participating locations in writing via email within five days of its determination.
The annually calculated exchange rate takes effect on February 1 of the current calendar year and applies to purchases of equipment, installation services, existing and new purchases of subscription software services, PARPay Services, Advance Exchange Services, and On-Site Remedial Maintenance Services. This ensures that Dq Treat franchisees in Canada have a consistent and predictable exchange rate for these specific expenses throughout the year, which aids in financial planning and budgeting.