If a Dq Treat franchisee transfers the franchise, when must they modernize their building?

According to Dq Treat's 2025 Franchise Disclosure Document, franchisees are required to modernize their building, premises, equipment, signage, and grounds to meet Dq Treat's current standards for similar new restaurants under certain conditions. These conditions include when the franchisee renews their franchise agreement, when the franchise is transferred, and every 10 years.

This modernization requirement ensures that all Dq Treat locations maintain a consistent and up-to-date image, which is crucial for brand recognition and customer experience. The standards to which the franchisee must modernize are those that are current at the time of the renewal, transfer, or 10-year mark. This means that the franchisee must stay informed about any changes or updates to Dq Treat's design and operational standards.

The modernization requirement on transfer of the franchise means that a franchisee looking to sell their Dq Treat business may need to invest in upgrades to bring the location up to current standards before the transfer can be completed. This can impact the sale price and the attractiveness of the franchise to potential buyers. Franchisees should factor in these potential costs when considering a sale or transfer.

It's also important to note that the modernization schedule may be shorter than 10 years if required by any applicable lease or sublease for the premises. This means franchisees need to carefully review their lease agreements to understand any additional modernization obligations. Staying compliant with these modernization requirements is essential for maintaining the franchise agreement and ensuring the continued success of the Dq Treat business.