In the Dq Treat FDD, what is the definition of a 'Captive-venue Location'?

According to Dq Treat's 2025 Franchise Disclosure Document, a Captive-venue Location is defined as a location inside particular venues that cater to high foot traffic. These venues include shopping malls (both enclosed and open-air, like lifestyle centers) with a minimum of 500,000 square feet of gross leasable area. The definition also encompasses transportation terminals, hospitals, college and university facilities, parks and recreation areas, and office buildings.

For a prospective Dq Treat franchisee, understanding this definition is crucial because the type of location (Captive-venue versus Street Location) impacts certain operational requirements and restrictions. For instance, the time allowed to open a new restaurant after construction commences differs: 90 days for Captive-venue Locations versus 120 days for Street Locations. Similarly, if a restaurant needs to be rebuilt or repaired due to damage, the timeframe to reopen varies: 120 days for Captive-venue Locations and 270 days for Street Locations.

Furthermore, the post-term noncompete clause also varies depending on the location type. If the Dq Treat restaurant is a Captive-venue Location, the franchisee and principal owners are restricted from engaging in a Competitive Business within the building or venue where the Authorized Location was situated for one year after the termination or expiration of the franchise agreement. In contrast, for Street Locations, the restriction applies within 500 meters of the Authorized Location.

Therefore, a franchisee should carefully consider the implications of operating a Dq Treat franchise in a Captive-venue Location, paying close attention to the specific requirements and restrictions outlined in the Franchise Disclosure Document and the operating agreement.