If a Dq Treat location in Canada finances equipment, in which currency must they pay?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
oftware Services, PARPay Services, Advance Exchange Services, and On-Site Remedial Maintenance Service, as applicable, as listed above in accordance with the terms and conditions of this Sales Order and the Participation Agreement executed by Participating Location and PAR. All Sales Orders are non-cancellable by Customer. Notwithstanding the foregoing, if PAR agrees to cancel any Sales Order, PAR may condition such cancellation on Customer paying a 10% restocking fee for any Equipment or other items returned to PAR.
Price Increases: Beginning on the calendar year starting January 1, 2021 pricing is subject to an annual increase based on an amount equal to the lesser of 2% or the amount of Consumer Price Index ("CPI") increase calculated based on the immediately preceding unadjusted 12 months (10/01 through 9/30), derived from the U.S. Department of Labor, Bureau of Labor Statistics web site, https://www.bls.gov/news.release/cpi.nr0.htm. Price increases will take effect February 1 of the then current calendar year. PAR will communicate prices increases to Participating Location in writing via email by January 15th.
Exchange Rate for Participating Locations in Canada. Participating Locations in Canada who are purchasing Equipment and Installation Services via an upfront payment may elect to pay for all Equipment and Services in USD or CAD. Participating Locations in Canada who are financing Equipment and Installation Services must pay in CAD for all Equipment and Services subject to the following. The exchange rate for Participating Locations in Canada whom elect to pay in CAD will be set for the spot rate of USD/CAD by the Wall Street Journal as reported by http://www.wsj.com/public/page/news-currency-currencies-trading.html on the Effective Date of the Master Hardware and Software Agreement between ParTech, Inc. and American Dairy Queen Corporation.
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 FDD, Canadian locations have specific guidelines regarding currency for equipment purchases. If a participating Dq Treat location in Canada chooses to finance their equipment and installation services, they are required to make all payments in Canadian dollars (CAD).
However, if a Canadian Dq Treat franchisee opts to make an upfront payment for equipment and installation services, they have the flexibility to choose between paying in either United States dollars (USD) or CAD. This provides some financial flexibility depending on the franchisee's preferences and financial strategies.
For those Canadian Dq Treat locations that choose to pay in CAD, the exchange rate from USD to CAD will be determined by the spot rate reported by the Wall Street Journal, specifically from the data available on http://www.wsj.com/public/page/news-currency-currencies-trading.html. This rate is set on the effective date of the Master Hardware and Software Agreement between ParTech, Inc. and American Dairy Queen Corporation. The exchange rate is initially maintained for one year from February 1, 2019, and is then revised annually. This annual revision occurs on January 1 (or the next business day) each year, using the average spot rate from the prior calendar year, and the updated rate takes effect on February 1 of the current calendar year. This rate applies not only to equipment and installation services but also to subscription software services, PARPay Services, Advance Exchange Services, and On-Site Remedial Maintenance Services.