If the Dq Treat franchisee is a business entity, what is required of its owners regarding management?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to operate your DQ® Treat franchise under your active and continuous supervision. If the franchisee is a business entity, the franchisee is required to have one owner who is responsible for overseeing the general management of the day-to-day operations of the location. If you are developing your first DQ® Treat location, you must have one designated manager and one assistant manager (ARD franchisees only need a designated manager) who have completed ADQ's training requirements in Item 11. Designated and assistant managers must personally invest their full time and attention and devote their best efforts to the on-premises general management of the day-to-day operations of the location, and meet ADQ's store or retail management experience requirements. Designated and assistant managers may not participate in the active operation or management of any other business.
You must ensure that any designated or assistant managers with access to confidential information (as defined in the franchise agreement) abide by the confidentiality obligations in the franchise agreement. Also, a designated manager cannot directly or indirectly operate, permit to be operated, or hold any interest in a competitive business.
If the franchisee will be a business entity, all of its owners must sign the personal undertaking and guarantee attached to the franchise agreement. You must identify your owners in the Ownership Addendum and notify ADQ in writing of any change in the owners.
Source: Item 15 — UItem 15U***:** U**Obligation to Participate in the Actual Operation of the Franchise Business (FDD page 51)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, if the franchisee is a business entity, one owner must be responsible for overseeing the general management of the day-to-day operations of the location. This individual is expected to actively supervise the Dq Treat franchise.
This requirement ensures that Dq Treat maintains a consistent standard of operation at all franchise locations. By mandating that at least one owner takes responsibility for the daily management, Dq Treat aims to ensure that someone with a vested interest is actively involved in the business. This can help maintain quality control and adherence to brand standards.
In addition to the owner's involvement, if it is the franchisee's first Dq Treat location, they must have one designated manager and one assistant manager (or just a designated manager if it is not their first location) who have completed Dq Treat's training requirements. These managers must devote their full time and attention to the on-premises general management and cannot be involved in any other business. All owners of the business entity must also sign a personal undertaking and guarantee attached to the franchise agreement, and any changes in ownership must be reported to Dq Treat in writing.
These stipulations are designed to ensure that each Dq Treat franchise is well-managed and that the owners are fully committed to the success of the business. The personal guarantee also holds the owners accountable for the financial obligations of the franchise, aligning their interests with the franchisor's.
Prospective franchisees should carefully consider these requirements and ensure they have a suitable management structure in place before investing in a Dq Treat franchise. They should also be prepared to meet the training requirements for themselves and their designated managers.