What factors can cause the initial investment amounts to vary for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) The initial investment amounts do not include the cost of land, and the amounts in several categories will vary depending on building size, whether you lease or own the space or building, and whether you are a new or conversion franchisee, among other factors.
- (16) If you are a conversion franchisee or a franchisee converting an existing facility that was a different restaurant brand, you may not incur all of the expenses listed in this Item 7. Conversion costs may vary significantly, depending on the type (i.e., Captive-venue or Street location) and condition of the facility, the prior use of the building, and other costs that might be incurred to rectify deferred maintenance issues and/or to make other facility upgrades that are not directly related to the conversion but that are completed at the same time.
- (10) Your investment in equipment and fixtures is highly variable for your store. The investment depends to a great extent on the size of the building or space and whether you are in a Captivevenue or Street location. The investment also depends on the size and location of your store, the anticipated traffic through the store, local labor costs, current prices charged by equipment suppliers, discretionary expenditures, inflation, financing costs and similar factors beyond ADQ's or your control.
- (6) The estimates include site work, buildout, mechanical and other related fees, but does not include land costs. A Captive-venue location will have approximately 600-1,400 square feet and will ordinarily be a leased space within a larger structure. A Street location will have approximately 1,000- 1,800 square feet and will ordinarily be owned. The initial investment for leasehold improvements will vary depending upon local labor costs, anticipated traffic through the store, and whether the building is a completed structure immediately adaptable to installation of necessary fixtures and equipment or whether it is a location where construction is in progress.
If you purchase land and building for a Street location, the land costs will generally vary from $250,000 to $620,000 or more.
Type of Expenditure Amount for Captive- Venue Location(1) P Amount for Street Location(1) P Method of Payment When Due To Whom Payment Is to Be Made(2) P Initial Training Fees and Costs(4) P $400 - $8,400 $750 - $8,400 Lump sum Prior to training ADQ or third party suppliers Travel and Living Expenses for Training Programs(5) P $5,200 - $17,300 $5,200 - $17,300 Lump sum As incurred during programs Transportation companies, hotels and restaurants Utility Deposits, Business Licenses and Government Charges(12) P $3,000 - $7,500 $3,000 - $15,000 Lump sum Prior to opening Third party suppliers; local municipality
Source: Item 7 — Estimated Initial Investment (FDD pages 24–29)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, several factors can influence the initial investment required to establish a franchise. These include the size of the building, whether the franchisee chooses to lease or own the space, and whether the franchisee is establishing a new location or converting an existing facility. For instance, purchasing land for a Street location can range from $250,000 to $620,000 or more, depending on location, lot size, and various construction-related costs. Conversion costs also vary significantly based on the type and condition of the existing facility, potentially requiring additional expenses to address deferred maintenance or facility upgrades.
The type of location, whether Captive-venue or Street, also significantly impacts costs. Captive-venue locations, typically smaller and leased within a larger structure, generally have lower initial investment costs compared to Street locations, which are usually larger and owned. Leasehold improvements are subject to local labor costs and the condition of the building, affecting the distribution of obligations between the landlord and tenant. Furthermore, the investment in equipment and fixtures is highly variable, depending on the store's size, location, anticipated traffic, local labor costs, and current supplier prices.
Additional factors influencing the initial investment include training fees and costs, which can range from $400 to $8,400 depending on the training components required and whether the franchisee qualifies for reduced fees based on prior experience. Travel and living expenses for training programs are estimated between $5,200 and $17,300, depending on the number of attendees and training types completed. Utility deposits, business licenses, and government charges can also vary, with potential impact study fees in some jurisdictions exceeding $100,000 for necessary permits and approvals. These factors highlight the importance of carefully reviewing all potential costs with a business advisor before committing to a Dq Treat franchise.