Following termination or expiration of my Dq Treat franchise, what geographic restrictions apply to my involvement in a Competitive Business?

According to the 2025 Dq Treat Franchise Disclosure Document, if your franchise is terminated or expires, there are geographic restrictions on your involvement in a Competitive Business. A Competitive Business is defined as any quick service restaurant that serves hamburgers but does not serve alcohol, or a business that generates more than 10% of its revenue from sales of ice cream, yogurt, frozen custard, fruit-based beverages, soft-serve or other frozen treats.

For a Dq Treat Street location, you cannot be directly or indirectly involved in a Competitive Business within 500 meters of your former authorized location for one year after the termination or expiration of your franchise. For a Captive-venue location, you are restricted from involvement in a Competitive Business within the same building or venue.

These non-compete covenants are designed to protect Dq Treat's market share and brand recognition within specific geographic areas. As a prospective franchisee, it's important to understand these restrictions and consider how they might impact your future business opportunities after your franchise agreement ends. You should carefully evaluate the location type (Street vs. Captive-venue) and the potential implications of these post-termination restrictions on your ability to operate a similar business in the vicinity.