What happens to the licensee's obligations under a sublease for the Dq Treat Restaurant premises after termination?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
14.3 Liable for Obligations. Licensee remains liable for its obligations under any applicable lease or sublease for the Restaurant premises and Authorized Location, and its other applicable obligations under this agreement or any other agreement between Licensee and Company or Company's affiliates.
14.4 Amounts Owed. Licensee must pay all sums due to Company, its affiliates or designees, or that Licensee owes to third parties which have been guaranteed by Company or any of its affiliates, within 10 days of the termination or expiration of this agreement.
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, a licensee remains responsible for their obligations under any lease or sublease for the restaurant premises, even after termination of the franchise agreement. This means that if a franchisee has a sublease agreement for their Dq Treat location, they are still liable for the terms of that sublease, including rent payments and other responsibilities, even after the franchise agreement ends.
This obligation extends to any other agreements between the licensee and Dq Treat or its affiliates. It also includes any debts the licensee owes to third parties that Dq Treat or its affiliates have guaranteed. The licensee must pay all these sums within 10 days of the termination or expiration of the agreement.
This provision protects Dq Treat by ensuring franchisees cannot simply walk away from lease obligations upon termination, potentially leaving the franchisor to deal with outstanding lease issues. For a prospective franchisee, this highlights the importance of carefully reviewing and understanding the terms of any lease or sublease agreement, as these obligations will survive the termination of the franchise agreement.