What is the extent of ADQ's involvement in arranging financing for Dq Treat franchisees?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Although they may have done so in the past, ADQ and its affiliates generally do not offer financing arrangements or similar assistance to franchisees, except as explained below. Neither ADQ nor its affiliates finance any part of the initial franchise fee.
Neither ADQ nor its affiliates will offer site acquisition, equipment or leasehold financing services to you for the establishment of your franchised business. You must obtain necessary financing through third parties. ADQ periodically arranges with third party finance companies or banks to make financing programs available to franchisees. These arrangements ordinarily involve no more than arranging to put franchisees in contact with sources of financing available. There is no assurance that financing will be offered in any particular instance. If financing is offered, the financial institution independently establishes the amount, terms, interest rate and duration. Neither ADQ nor any of its affiliates receive any payments in exchange for such referrals or the
placement of any financing. It is solely your responsibility to locate and obtain, on whatever terms you can arrange, any required financing for the establishment of your franchised business.
Source: Item 10 — Financing (FDD pages 36–37)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, ADQ and its affiliates generally do not offer direct financing arrangements to franchisees. They also do not finance any part of the initial franchise fee, site acquisition, equipment, or leasehold improvements. Therefore, franchisees are responsible for securing their own financing through third-party sources.
ADQ's involvement in financing is limited to periodically arranging contacts between franchisees and third-party finance companies or banks. These arrangements are purely for informational purposes, and there is no guarantee that financing will be offered. If financing is offered, the financial institution independently determines the amount, terms, interest rate, and duration of the loan.
ADQ does not receive any payments or compensation for these referrals or the placement of financing. The FDD makes it clear that it is solely the franchisee's responsibility to find and obtain the necessary financing for establishing their Dq Treat business, under whatever terms they can negotiate. This is a common practice in franchising, where the onus of securing capital typically falls on the franchisee, while the franchisor focuses on providing the business system and brand support.