What happens if there is an agreement for a unified purchasing program 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, if there is an agreement for a unified purchasing program, ADQ (American Dairy Queen) will designate the approved manufacturers, suppliers, or distributors properly selected within the structure of that program. Additionally, ADQ retains the right to designate a single approved manufacturer, supplier, and/or distributor for any approved products under the unified purchasing program.
This means that Dq Treat franchisees may be required to purchase certain products from specific, ADQ-approved sources if a unified purchasing program is in place. This program is intended to benefit the entire Dq Treat system in the United States. The unified purchasing program is a joint effort between ADQ and a cooperative association of DQ restaurant and store operators.
For a prospective franchisee, this implies less flexibility in choosing suppliers but potentially better pricing or quality control due to the negotiated agreements within the unified purchasing program. It is important to understand the details of any such program, including which products are covered, the designated suppliers, and the process for selecting those suppliers. Franchisees should also inquire about the potential benefits and drawbacks of the program, such as cost savings, quality consistency, and the ability to influence supplier selection through the cooperative association.