What happens to undisputed fees if the Dq Treat agreement is terminated or expires?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon any termination or expiration of the Agreement: (a) all undisputed Fees for Services or Professional Services performed through the date of termination or expiration, which have not yet been previously paid, will become immediately due and payable; (b) upon early termination by Punchh or Customer, for reasons other than Customer's breach, Punchh will refund Customer or it's Franchisee(s) as applicable for any Platform Fees (as defined in the applicable Order Form) or Professional Services which have been prepaid but unused on a pro-rata basis based on the date of the termination of the applicable Services or Professional Services; (c) all rights and licenses granted to Customer and its Authorized Users hereunder will end; (d) Punchh may cease providing Services; (e) Customer will cease all access to and use of the Platform and Services; (f) each party will return to the other party or destroy (at the other party's option) all Confidential Information and other property of the other party in such party's possession or control; (g) all final reports are to be promptly provided to Customer.
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 the 2025 Dq Treat Franchise Disclosure Document, upon any termination or expiration of the agreement, all undisputed fees for services or professional services performed through the date of termination or expiration, which have not yet been previously paid, will become immediately due and payable. This means that if a Dq Treat franchisee owes any fees that they do not dispute, they must pay them immediately when the franchise agreement ends, whether through termination or expiration.
This provision protects Dq Treat by ensuring that it receives all outstanding payments for services rendered up to the point of termination or expiration. It also creates a clear expectation for the franchisee regarding their financial obligations upon exiting the franchise system. The franchisee is responsible for ensuring all undisputed fees are paid promptly to avoid any further collection actions or legal issues.
Additionally, the FDD states that sections related to obligations, amounts owed, and other terms survive any expiration or termination of the agreement. This reinforces the franchisee's responsibility to settle all outstanding financial matters with Dq Treat, even after the franchise relationship has ended. Franchisees should maintain accurate records of all payments and services to ensure clarity and avoid disputes during the termination or expiration process.
In the event of early termination by Punchh or Customer, for reasons other than Customer's breach, Punchh will refund Customer or it's Franchisee(s) as applicable for any Platform Fees (as defined in the applicable Order Form) or Professional Services which have been prepaid but unused on a pro-rata basis based on the date of the termination of the applicable Services or Professional Services.