factual

For Dq Treat franchisees, can the equipment or replacement equipment provided through Advance Exchange Services contain used components?

Dq_Treat Franchise · 2025 FDD

Answer from 2025 FDD Document

(a) New or Equivalent. The Equipment, replacement Equipment provided through Advance Exchange Services, and any parts PAR furnishes may not be newly manufactured and may contain used components; the foregoing does not impact the Equipment Warranty. Equipment that has been replaced (or parts thereof) shall be PAR property.

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 Dq Treat's 2025 Franchise Disclosure Document, equipment and replacement equipment provided through Advance Exchange Services may contain used components. Specifically, the equipment, replacement equipment provided through Advance Exchange Services, and any parts provided by PAR (the equipment supplier) may not be newly manufactured and may contain used components. However, this does not affect the equipment warranty provided by PAR. Any equipment that has been replaced, or parts of that equipment, will become the property of PAR.

This policy has a few implications for a prospective Dq Treat franchisee. First, franchisees should be aware that they might receive equipment that isn't brand new, which could affect its lifespan or performance. However, the equipment warranty is still in effect, offering some protection against defects. Second, franchisees need to understand that any replaced equipment becomes the property of PAR, so they cannot retain or reuse those parts.

In the franchise industry, it is not uncommon for franchisors to use refurbished or remanufactured equipment, especially for electronics or specialized machinery. This practice can help reduce costs for both the franchisor and franchisee. However, it is crucial that the equipment meets certain quality standards and is covered by a warranty to ensure franchisees are not burdened with frequent repairs or replacements. Dq Treat franchisees should carefully review the terms of the equipment warranty to understand their rights and responsibilities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.