For a Dq Treat franchise, what is the licensee's responsibility regarding items added to the total construction cost via approved change orders?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Bids can be influenced by local governing regulations and requirements, developers' design criteria, and actual site as built conditions. The general contractor shall include all items in the bid. However, because of timing or unforeseen circumstances, some of these items may be added to the total construction cost via approved change orders and paid by the Licensee.
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- ADQ does not assume any responsibility for construction cost overruns or costs associated with opening delays. All construction costs, late fees, rental commencement charges, etc., associated with the project opening are the sole responsibility of the Licensee.
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 licensee is responsible for paying for items added to the total construction cost via approved change orders. These change orders may arise due to timing or unforeseen circumstances during construction.
It is important to note that Dq Treat does not assume responsibility for construction cost overruns or costs associated with opening delays. All construction costs, late fees, rental commencement charges, and other expenses related to the project opening are the sole responsibility of the licensee. This means that franchisees need to carefully manage their construction budget and timeline, as any unexpected issues or delays could result in additional costs that they will be required to cover.
Before construction begins, Dq Treat requires all design changes to the building and equipment to be made prior to final plan approval, obtaining final bids, and signing the construction contract. Any changes made after signing the contract may result in additional costs to the licensee. No changes are to be made without notifying the construction consultant and obtaining written approval from Dq Treat. This highlights the importance of thorough planning and due diligence before finalizing the construction contract to avoid potential cost increases later on.