Does Exhibit K contain the financial statements for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The following audited financial statements of IDQ are included in this disclosure document as Exhibit K: consolidated balance sheets of IDQ at December 31, 2024 and 2023 and related consolidated statements of income and comprehensive income, stockholder's equity and cash flows for each of the years ended December 31, 2024, 2023 and 2022, together with the independent auditor's report.
These financial statements are the consolidated financial statements of IDQ, the parent corporation of ADQ and its other subsidiaries. ADQ's separate financial statements are not included in this disclosure document. Should ADQ fail to fulfill its obligations to its franchisees, however, IDQ unconditionally guarantees to fulfill such obligations. A copy of IDQ's written Guarantee of Performance is included in Exhibit K.
Source: Item 21 — UItem 21U***:** U**Financial Statements (FDD page 67)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, Exhibit K includes the audited financial statements of IDQ (International Dairy Queen, Inc.). These statements consist of consolidated balance sheets as of December 31, 2024, and 2023, along with related consolidated statements of income, comprehensive income, stockholder's equity, and cash flows for the years ending December 31, 2024, 2023, and 2022, accompanied by the independent auditor's report.
It is important to note that these financial statements are for IDQ, the parent corporation of ADQ (American Dairy Queen Corporation) and its other subsidiaries. The separate financial statements of ADQ, the direct franchisor of Dq Treat, are not included in the disclosure document. However, IDQ provides an unconditional guarantee to fulfill ADQ's obligations to its franchisees should ADQ fail to do so. A copy of IDQ's written Guarantee of Performance is also included in Exhibit K.
For a prospective Dq Treat franchisee, this means that while you won't see the specific financials of the company you are directly franchising with (ADQ), you do have access to the financial statements of its parent company (IDQ), which guarantees ADQ's obligations. This guarantee offers a level of financial security, as IDQ is committed to ensuring that ADQ meets its commitments to franchisees. Reviewing IDQ's financial statements can provide insight into the overall financial health and stability of the larger organization behind the Dq Treat franchise.