For a Dq Treat franchise, what could be the result of making design changes after signing the construction contract?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- All design changes to the building and equipment must be made prior to ADQ final plan approval, obtaining final bids and signing of the construction contract. Changes made after signing the contract may result in additional costs to Licensee. NO CHANGES ARE TO BE MADE WITHOUT NOTIFYING THE CONSTRUCTION CONSULTANT AND OBTAINING WRITTEN APPROVAL FROM ADQ.
-
- 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, making design changes to the building and equipment after signing the construction contract may result in additional costs to the franchisee. The FDD emphasizes that all design changes should be made before ADQ final plan approval, obtaining final bids, and signing the construction contract.
It is critical that franchisees notify the construction consultant and obtain written approval from ADQ before making any changes. This requirement is in place to manage costs and ensure that the changes align with Dq Treat's standards. The FDD also states that Dq Treat does not assume responsibility for construction cost overruns or costs associated with opening delays, making it the franchisee's sole responsibility to cover these expenses.
This policy is typical in franchising, as franchisors need to maintain brand consistency and control construction costs. Franchisees should carefully consider all design elements and potential changes before finalizing the construction contract to avoid unexpected expenses and delays. Failing to adhere to this policy could lead to financial strain and potential conflicts with Dq Treat.