Can a Dq Treat franchisee terminate the Participation Agreement for convenience, and if so, what are the requirements?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.1. Master Termination. If Dairy Queen terminates the Master Agreement for an uncured material Breach of Contract, this Agreement will terminate immediately and no further fees will be due for Products or Services under this Agreement. Acumera may, at Acumera's option and expense, require Participating Location to return Products supplied under this Agreement. Termination shall not relieve Participating Location of the obligation to pay any Fees accrued or payable to Acumera prior to the effective date of termination. Should Participating Location elect to continue to use Acumera's Services past the date of termination of the Master Agreement, the portions of this Agreement which do not concern duties of Dairy Queen will remain in full force and effect, and Participating Location is responsible for all fees incurred as long as Services are being used. In no case will this Agreement extend beyond the Initial Term, if the Master Agreement has been terminated prior to the end of the Initial Term, or beyond the end of the current Renewal Term, if the Master Agreement has been terminated after the end of the Initial Term.
- 13.2. Termination. Either party may terminate this Agreement for any reason or for no reason at the end of a Term or Location Term by giving written notice to the other party not less than thirty (30) days prior to the end of the then current Term. Participating Location may terminate this Agreement only in accordance with the termination conditions set forth in this Agreement.
- 13.3. Early Termination. If Participating Location desires to terminate this Agreement prior to the end of the Initial Term or Initial Location Term ("Early Termination"), Participating Location shall give Acumera notice, pursuant to Section 23, of its intent to terminate early thirty (30) days prior to the desired termination date. Termination shall not relieve Participating Location of the obligation to pay any Fees accrued or payable to Acumera prior to the effective date of termination. Participating Location shall also be responsible for paying an early termination charge according to the following schedule:
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, a Participating Location (franchisee) has the option to terminate the Acumera Agreement for any reason or no reason at the end of the current term. To do so, the franchisee must provide written notice to Acumera at least thirty (30) days before the end of the then-current term.
However, if a Dq Treat franchisee wishes to terminate the Acumera Agreement before the end of the Initial Term or Initial Location Term (referred to as "Early Termination"), they must provide Acumera with written notice of their intent to terminate thirty (30) days before the desired termination date. In this case, early termination does not relieve the franchisee of the obligation to pay any fees that have accrued up to the termination date. Additionally, the franchisee will be responsible for paying an early termination charge, the amount of which is determined by a schedule that is not detailed in this excerpt.
If Dairy Queen terminates the Master Agreement due to an uncured material breach of contract, the Acumera Agreement will terminate immediately, and no further fees will be due for Products or Services under the agreement. In this case, Acumera may require the Participating Location to return Products supplied under the Agreement. However, the franchisee is still obligated to pay any fees that accrued before the termination date. If the franchisee continues to use Acumera's Services after the Master Agreement is terminated, the portions of the Agreement that do not concern Dairy Queen's duties will remain in effect, and the franchisee will be responsible for all fees incurred as long as the services are used. In any case, the Acumera Agreement will not extend beyond the Initial Term if the Master Agreement is terminated before the end of the Initial Term, or beyond the end of the current Renewal Term if the Master Agreement is terminated after the end of the Initial Term.