Where must Dq Treat franchisees identify their owners if the franchisee is a business entity?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if the franchisee is a business entity, the owners must be identified in the Ownership Addendum attached to the franchise agreement. Additionally, Dq Treat requires written notification to ADQ of any changes in ownership.
This requirement ensures that Dq Treat is aware of all individuals or entities with a financial stake in the franchise. This transparency is crucial for maintaining accountability and ensuring compliance with the franchise agreement. The personal undertaking and guarantee attached to the franchise agreement must be signed by all owners of a business entity franchisee.
For prospective franchisees, this means that if you plan to operate your Dq Treat franchise through a corporation, LLC, or partnership, you will need to disclose the identities of all shareholders, members, or partners. Any subsequent changes in ownership must also be promptly reported to Dq Treat. This is a standard practice in franchising, as franchisors typically want to know who is involved in the ownership and management of their franchise locations.