Is a Dq Treat franchisee required to obtain financing through third parties?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Although they may have done so in the past, ADQ and its affiliates generally do not offer financing arrangements or similar assistance to franchisees, except as explained below. Neither ADQ nor its affiliates finance any part of the initial franchise fee.
Neither ADQ nor its affiliates will offer site acquisition, equipment or leasehold financing services to you for the establishment of your franchised business. You must obtain necessary financing through third parties. ADQ periodically arranges with third party finance companies or banks to make financing programs available to franchisees. These arrangements ordinarily involve no more than arranging to put franchisees in contact with sources of financing available. There is no assurance that financing will be offered in any particular instance. If financing is offered, the financial institution independently establishes the amount, terms, interest rate and duration. Neither ADQ nor any of its affiliates receive any payments in exchange for such referrals or the
placement of any financing. It is solely your responsibility to locate and obtain, on whatever terms you can arrange, any required financing for the establishment of your franchised business.
Source: Item 10 — Financing (FDD pages 36–37)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, franchisees are generally required to obtain financing through third parties. Dq Treat and its affiliates do not typically offer direct financing arrangements for the initial franchise fee, site acquisition, equipment, or leasehold improvements.
The FDD indicates that Dq Treat may periodically arrange for third-party finance companies or banks to offer financing programs to franchisees. However, these arrangements are limited to facilitating contact between franchisees and potential financing sources. Dq Treat does not guarantee that financing will be offered in any specific case, and the financial institutions independently determine the amount, terms, interest rate, and duration of any financing provided.
Ultimately, it is the franchisee's responsibility to secure the necessary financing for establishing their Dq Treat franchised business. Dq Treat does not receive payments for these referrals or the placement of financing. This arrangement is typical in the franchise industry, where franchisors often prefer not to directly finance franchisees, reducing their own financial risk and exposure.