For a Dq Treat franchise, what is the licensee's responsibility regarding late fees associated with the project opening?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Company support of your proposed project is focused on maintaining an efficient timeline from acceptance of your application through opening. If you are applying for a DQ Grill & Chill franchise and your application is approved, you may be eligible to participate in the Timeline Incentive Program, which provides an incentive for you to open your restaurant within the planned timeline.
Lender Capabilities and Requirements:
You are solely responsible for identifying and gaining commitment from a lender that enables you to manage your project within the opening timeline requirements as stated in the consent letter if consent is granted (i.e. SBA preferred and express lenders and providers with the ability to expedite lending). Company has no obligation to assist you with financing and will not adjust timelines based on your inability to timely secure appropriate financing.
Feasibility Information and Requirements:
Prior to consent, you will be required to secure feasibility information to assess necessary design and governmental approval requirements. The reliability and accuracy of the information you provide us could directly impact your project's required opening timeline. Therefore, it is essential that you provide us with reliable and accurate information on feasibility prior to consent. Company has no obligation to adjust timelines based upon your inability to timely secure any necessary design or governmental approvals.
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)
Based on the 2025 Dq Treat Franchise Disclosure Document, the licensee is responsible for managing the project within the opening timeline requirements. While the document emphasizes the importance of maintaining an efficient timeline from application acceptance to opening, it does not explicitly mention any late fees associated with project opening.
The FDD states that Dq Treat support is focused on maintaining an efficient timeline. If applying for a DQ Grill & Chill franchise, the franchisee may be eligible for the Timeline Incentive Program, which provides an incentive to open the restaurant within the planned timeline. The licensee is solely responsible for securing financing that allows them to manage the project within the opening timeline. Dq Treat has no obligation to assist with financing or adjust timelines based on the franchisee's inability to secure timely financing.
Prior to consent, the franchisee must secure feasibility information to assess design and governmental approval requirements. Providing reliable and accurate information is essential, as it directly impacts the project's opening timeline. Dq Treat is not obligated to adjust timelines if the franchisee cannot secure necessary approvals in a timely manner. The licensee must ensure the new restaurant is open and operating within 90 days if a Captive-venue Location, or 120 days if a Street Location after construction commences.
In summary, while the FDD does not specify late fees, it places significant emphasis on the franchisee's responsibility to adhere to the project timeline. A prospective franchisee should directly ask Dq Treat about any potential late fees or penalties associated with delays in opening to fully understand the financial implications of timeline adherence.