How does the Dq Treat FDD define 'Franchisee'?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ts for a Transfer ........ 24 | 15.4 | Authority ....................................... 36 |
DQ® TREAT OPERATING AGREEMENT
This agreement is between American Dairy Queen Corporation, a Delaware corporation whose principal office is located at 8000 Tower, Suite 700, 8331 Norman Center Drive, Bloomington, MN 55437 ("Company"), and the Licensee listed on the cover page to this agreement, and is effective as stated in section 15.15.
Background
- Company and its predecessors and affiliates have expended considerable time, effort, skill and financial resources in developing the System (defined in section 16).
- Company owns, or licenses from its affiliates, the Trademarks (defined in section 16) used in connection with the System.
- Licensee desires to obtain the right to develop and operate one DQ® Treat restaurant using the System.
Therefore, the parties agree as follows:
Terms and Conditions
- 1. CAPITALIZED TERMS. Capitalized terms have the definitions given them in section 16.
- **2.
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, the term 'Licensee' is used in the DQ® Treat Operating Agreement to refer to the franchisee. The agreement is between American Dairy Queen Corporation ('Company') and the 'Licensee' listed on the cover page. The Licensee is granted the right to develop and operate one Dq Treat restaurant using the Dq Treat system.
This agreement specifies that the Licensee accepts the license and agrees to operate the restaurant in compliance with the Dq Treat system and the terms of the agreement. The license is limited to operating one restaurant at the authorized location and does not grant an exclusive territory.
Prospective franchisees should understand that as Licensees, they are responsible for meeting pre-opening requirements, including training and adhering to the company's schedules and procedures. They must also secure their own financing and obtain necessary feasibility information and governmental approvals, as the company is not obligated to assist with these aspects.