Are the fees refundable for a Dq Treat franchise?
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 the franchisor or its affiliates are nonrefundable. The document specifies that, unless explicitly stated otherwise, all fees are uniformly imposed and nonrefundable.
However, there is an 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. The refund will be net of any actual expenditures or disbursements that Dq Treat incurs while processing the proposed transfer.
Prospective franchisees should carefully review Item 6 of the FDD, which details various fees, to understand which fees are nonrefundable and under what specific conditions a refund may be possible. This is crucial for financial planning and risk assessment before investing in a Dq Treat franchise.