What happens if a Dq Treat designated manager holds an interest in a competitive business?

According to Dq Treat's 2025 Franchise Disclosure Document, a designated manager cannot directly or indirectly operate, permit to be operated, or hold any interest in a competitive business. This restriction is in place to ensure the manager's full commitment and focus on the success of the Dq Treat franchise.

This requirement means that Dq Treat franchisees must ensure their designated managers do not have any conflicting business interests. This could involve verifying that the manager does not own stock in a competing business, is not involved in the management of another similar business, or does not have any other financial stake in a competing enterprise. The definition of 'competitive business' is not provided in this excerpt, so it would be prudent to clarify this with Dq Treat during the due diligence process.

This stipulation is fairly standard in the franchise industry, as franchisors want to prevent conflicts of interest and ensure that managers are fully dedicated to the success of the franchise. Franchisees should carefully vet potential managers to confirm they meet this requirement and maintain compliance throughout the term of the franchise agreement. Failure to comply with this requirement could potentially lead to penalties or termination of the franchise agreement.