Are the fees payable to ADQ or one of ADQ's affiliates by Dq Treat franchisees refundable?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Except where otherwise noted, all fees are payable to ADQ or one of ADQ's affiliates, are uniformly imposed and are nonrefundable. | Transfer Fee (for franchise agreement) | $6,000 | When you submit transfer application | Effective January 1, 2030, and each 5 years thereafter, the transfer fee increases by $500. If ADQ refuses to consent to your proposed transfer or exercises its right of first refusal, ADQ will return the transfer fee, less any actual expenditures or disbursements that ADQ makes in direct connection with processing the proposed transfer. |
Source: Item 6 — Other Fees (FDD pages 20–24)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, most fees paid to ADQ or its affiliates are nonrefundable. The only exception to this rule applies to the transfer fee.
Specifically, the standard policy is that all fees are nonrefundable unless explicitly stated otherwise. This means that franchisees should carefully consider all fee obligations before entering into an agreement with Dq Treat, as these payments are generally not recoverable.
However, there is a conditional exception regarding the transfer fee. If Dq Treat refuses a proposed transfer or exercises its right of first refusal, the transfer fee will be returned to the franchisee. However, Dq Treat may deduct any actual expenditures or disbursements it incurred while processing the proposed transfer. The transfer fee is $6,000, and increases by $500 every five years starting January 1, 2030.