For Dq Treat, what is included in the definition of 'Food Menu'?

According to the 2025 Dq Treat FDD, the term 'Food Menu' encompasses all food and beverage products listed on the menu, with a specific exclusion. Products that contain soft-serve as an ingredient are not considered part of the 'Food Menu' definition, regardless of any past practices. This definition is important because it affects the calculation of continuing license fees for franchisees converting from existing non-system food operations.

Specifically, Dq Treat franchisees converting from existing non-system food operations pay no continuing license fee for Food Menu products for the first partial month and the next 36 consecutive months after the effective date. Starting with the 37th full month, the franchisee must pay a monthly continuing license fee to Dq Treat, calculated as 5% of Food Sales minus Base Food Sales. 'Base Food Sales' is defined as the highest Food Sales achieved during any consecutive full 12-month period occurring between months 1-36 after the effective date.

'Food Sales' are defined as the total revenues and receipts from the sale of Food Menu products sold by the store, whether paid for by cash, credit (not adjusted for credit card or other fees) or gift card, barter, or otherwise, excluding sales taxes and revenues and receipts arising directly from Licensee's sale of gift cards. This distinction between products made with soft-serve and other food and beverage items is crucial for calculating the royalties owed to Dq Treat, especially during the initial years of operation for converted locations.