What happens if a Dq Treat Participating Location fails to tender any payment when due?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
If Participating Location (i) fails to tender any payment when due in accordance with these Terms and the terms of the applicable invoice, (ii) fails or refuses to accept the Equipment properly tendered (iii) fails in any other respect to perform its obligations in accordance with these Terms, or (iv) becomes insolvent or, if any bankruptcy, insolvency, reorganization, or liquidation proceeding or other proceeding or relief under any bankruptcy law or any law for the relief of debtors is instituted by Participating Location for relief thereunder, or is instituted against Participating Location, the occurrence of any of the events specified in clauses (i) – (iv) above being deemed to constitute a material breach hereof, PAR may, in addition to any other remedies PAR may have at law or in equity, (y) with or without demand or notice to Participating Location declare the entire amount unpaid immediately due and
payable and/or (z) enter upon the premises where the Equipment may be found and remove it and resell any of the Equipment, the Purchase Price of which has not been fully paid or which has been shipped and which Participating Location has wrongfully failed or refused to accept, and receive from Participating Location the difference between the Purchase Price with respect to any such Equipment and the price obtained on resale (if less), as well as any incidental costs and expenses incurred by PAR.
All rights and remedies of PAR shall be cumulative and not exclusive of any other rights or remedies which PAR would otherwise have at law or in equity.
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, if a Participating Location fails to make a payment when it is due, it is considered a material breach of the agreement. In such a case, PAR (presumably a service provider or affiliate) has several options.
First, PAR can declare the entire unpaid amount immediately due and payable, meaning they can demand the full outstanding balance right away. Second, PAR can enter the premises where the equipment is located and remove it. They can then resell the equipment if it hasn't been fully paid for or if the Participating Location refused to accept it after shipment.
Finally, Dq Treat's PAR can require the Participating Location to pay the difference between the original purchase price of the equipment and the price obtained from the resale, if the resale price is lower. The Participating Location is also responsible for any incidental costs and expenses incurred by PAR during this process. These rights and remedies available to PAR are cumulative, meaning they can use one or more of these options, and they do not exclude any other legal or equitable remedies PAR may have.