Is a Dq Treat franchisee required to actively supervise the operation of their franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to operate your DQ® Treat franchise under your active and continuous supervision. If the franchisee is a business entity, the franchisee is required to have one owner who is responsible for overseeing the general management of the day-to-day operations of the location. If you are developing your first DQ® Treat location, you must have one designated manager and one assistant manager (ARD franchisees only need a designated manager) who have completed ADQ's training requirements in Item 11. Designated and assistant managers must personally invest their full time and attention and devote their best efforts to the on-premises general management of the day-to-day operations of the location, and meet ADQ's store or retail management experience requirements. Designated and assistant managers may not participate in the active operation or management of any other business.
You must ensure that any designated or assistant managers with access to confidential information (as defined in the franchise agreement) abide by the confidentiality obligations in the franchise agreement. Also, a designated manager cannot directly or indirectly operate, permit to be operated, or hold any interest in a competitive business.
If the franchisee will be a business entity, all of its owners must sign the personal undertaking and guarantee attached to the franchise agreement. You must identify your owners in the Ownership Addendum and notify ADQ in writing of any change in the owners.
Source: Item 15 — UItem 15U***:** U**Obligation to Participate in the Actual Operation of the Franchise Business (FDD page 51)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, franchisees are required to actively and continuously supervise the operation of their franchise. If the franchisee is a business entity, at least one owner must be responsible for overseeing the general management and day-to-day operations of the location.
For franchisees developing their first Dq Treat location, they must have a designated manager and an assistant manager (though ARD franchisees only need a designated manager). These managers must complete Dq Treat's training requirements and devote their full time and attention to the on-premises management of the location. These managers cannot be involved in the operation or management of any other business.
Designated or assistant managers with access to confidential information must adhere to the confidentiality obligations outlined in the franchise agreement. Furthermore, a designated manager is prohibited from operating or holding any interest in a competitive business. If the franchisee is a business entity, all owners must sign a personal undertaking and guarantee attached to the franchise agreement, and Dq Treat must be notified of any changes in ownership.