What is the Dq Treat franchisee's obligation if there is a change in ownership?
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 the 2025 Dq Treat FDD, if the franchisee is a business entity, they must notify ADQ (American Dairy Queen Corporation) in writing of any change in the owners. Additionally, all owners of the business entity must sign the personal undertaking and guarantee attached to the franchise agreement.
This requirement ensures that Dq Treat is aware of who the current owners are and that all owners are bound by the agreements and obligations outlined in the franchise agreement. This is a standard practice in franchising, as the franchisor needs to maintain control over who is operating under their brand name and ensure they meet the franchisor's standards.
For a prospective Dq Treat franchisee, this means that if you plan to operate the franchise through a corporation, LLC, or partnership, you must keep Dq Treat informed of any changes in ownership. This includes providing written notification and ensuring that all new owners sign the necessary personal guarantees. Failure to comply with these requirements could potentially lead to a breach of the franchise agreement.