How are 'Fees' determined for Dq Treat franchisees according to the FDD?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
any training program? Please refer to the appropriate franchise disclosure document (FDD) for the training requirements for each concept.
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- What other businesses do you currently own? For each business, please indicate in detail the makeup of the management team for that business. Note: If you currently own a DQ or Orange Julius franchise, which of your management team has already successfully completed the applicable Company training program? When did they attend tra
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 Franchise Disclosure Document, the initial franchise fee for a Dq Treat store is $25,000. This fee is paid in two installments. The first is a non-refundable deposit of $10,000, which is due when the franchise application is submitted. The remaining balance of $15,000 is due within 10 days after American Dairy Queen (ADQ) approves the application and issues a written consent letter.
In addition to the initial franchise fee, Dq Treat franchisees may be subject to other fees and charges throughout the term of their agreement. For example, franchisees participating in certain programs may be required to pay program fees as outlined in Exhibit C of their participation agreement. These program fees are subject to adjustments if there are increases or decreases in costs associated with the program. Franchisees will receive 30 days' notice of any adjustments that result in an increase in cost.
Furthermore, if a Dq Treat franchisee seeks to renew their license, they must pay a non-refundable renewal fee. This renewal fee is calculated as $1,000 times the number of years included in the renewal term, with a maximum fee of $10,000. For instance, a renewal agreement for 7½ years would result in a renewal fee of $8,000. It's important to note that the terms of the renewed operating agreement may differ significantly from the original agreement, potentially including higher or additional fees. Also, the transfer fee increases by $500 on January 1, 2025, and on each 5-year anniversary of that date.
Prospective Dq Treat franchisees should carefully review the specific fee structure outlined in the Franchise Disclosure Document and related exhibits to fully understand the financial obligations associated with operating a franchise. Understanding these fees is crucial for accurate financial planning and assessing the overall profitability of the franchise venture.