What is the geographic scope of the unified purchasing program being considered by ADQ for Dq Treat franchises?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ADQ has received and offered proposals to create a unified purchasing program as a joint effort between ADQ and a cooperative association of DQ® restaurant and store operators, to benefit the entire DQ® system in the United States. For any period during which there is an agreement for a unified purchasing program: (1) ADQ will designate as approved the manufacturers, suppliers or distributors properly selected within the structure of that program; and (2) ADQ has the right to designate a single approved manufacturer, supplier and/or distributor of any approved products.
Source: Item 8 — UItem 8U***:** U**Restrictions on Sources of Products and Services (FDD pages 29–35)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, ADQ (American Dairy Queen) has considered implementing a unified purchasing program that would benefit the entire Dq Treat system in the United States. This program is envisioned as a collaborative effort between ADQ and a cooperative association of Dq Treat restaurant and store operators.
If such a unified purchasing program is established, ADQ would designate the approved manufacturers, suppliers, and distributors selected within the program's structure. Additionally, ADQ would retain the right to designate a single approved manufacturer, supplier, or distributor for any approved products. This suggests a move towards standardized sourcing to potentially leverage better pricing and quality control for the Dq Treat system.
Currently, without a unified purchasing program in place, Dq Treat franchisees can request approval for specific products, services, or equipment from alternative manufacturers, suppliers, or distributors, adhering to ADQ's policies and procedures. However, ADQ always reserves the right to designate a single approved source for specific products like soft drinks, third-party branded products, items for limited-time offers, equipment (including EPOS systems), products where ADQ doesn't receive fees (excluding marketing payments), and Orange Julius proprietary items.
It is important for prospective Dq Treat franchisees to understand that the implementation of a unified purchasing program could significantly alter their ability to choose suppliers and negotiate prices independently. While the program aims to benefit the entire system, franchisees should inquire about the specific terms, potential cost savings, and the selection process for approved suppliers under such a program.