For a Dq Treat franchise, how might unforeseen circumstances affect the total construction cost?

According to the 2025 Dq Treat FDD, unforeseen circumstances can indeed impact the total construction costs for a new franchise location. The FDD specifies that bids from general contractors are influenced by local regulations, developer design criteria, and the actual site conditions as they are built. Because of timing or unforeseen circumstances, some items may be added to the total construction cost through approved change orders, which the franchisee is responsible for paying. This means that while the initial bid aims to cover all necessary construction aspects, unexpected issues or changes during the building process can lead to increased expenses for the franchisee.

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, and rental commencement charges are the sole responsibility of the franchisee. Therefore, franchisees need to be prepared for potential additional costs beyond the initial estimates. This could include setting aside a contingency fund to cover unforeseen expenses or thoroughly investigating the site conditions and local regulations beforehand to minimize potential surprises.

To mitigate these risks, Dq Treat advises franchisees to make all design changes before obtaining final plan approval, securing final bids, and signing the construction contract. Changes made after signing the contract may result in additional costs. Furthermore, franchisees must notify the construction consultant and obtain written approval from Dq Treat for any changes. This proactive approach aims to control costs and ensure that all modifications are aligned with the franchisor's standards and are properly accounted for in the budget. Franchisees should also ensure that all locally furnished approved equipment is available to the general contractor to keep construction on schedule and avoid delays that could lead to additional expenses.

In summary, while Dq Treat provides guidance and consultation during the construction phase, franchisees must be aware of the potential for unforeseen circumstances to increase construction costs. Careful planning, adherence to Dq Treat's guidelines, and proactive communication with the construction consultant can help manage these risks and ensure the project stays within budget.