What is included in the definition of 'products' for Dq Treat franchises?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
You may only use or purchase products approved by ADQ that meet ADQ's specifications. For purposes of this Item 8, "products" includes products, services, ingredients, supplies, signage, fixtures, furnishings, advertising and sales promotion materials, and equipment (including hardware and software for a computerized electronic point-of-sale ("EPOS") system or other
computer systems, communications equipment, or electronic services providers). Approved products must meet ADQ's specifications, and are manufactured, provided or prepared by ADQ approved manufacturers, suppliers or distributors. ADQ periodically identifies approved products for use in DQ® locations, and has the right to periodically change the list of approved products, and to update and alter the specifications for approved products.
Source: Item 8 — UItem 8U***:** U**Restrictions on Sources of Products and Services (FDD pages 29–35)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the term 'products' encompasses a wide array of items necessary for operating a franchise. This includes not only the core offerings such as products, services, and ingredients, but also extends to supplies, signage, fixtures, and furnishings. Furthermore, the definition includes advertising and sales promotion materials, as well as equipment, including both hardware and software for computerized electronic point-of-sale (EPOS) systems, other computer systems, communications equipment, and electronic services providers.
This broad definition has significant implications for prospective franchisees. It means that Dq Treat has the authority to set standards and approve suppliers for a vast range of goods and services used in the business. Franchisees must adhere to these approved products and meet Dq Treat's specifications to maintain uniformity and quality across the franchise system. This ensures brand consistency but also limits the franchisee's autonomy in sourcing and potentially negotiating better deals with alternative suppliers.
The FDD also indicates that Dq Treat can periodically change the list of approved products and update their specifications. This means franchisees need to stay informed about these changes and adapt their purchasing accordingly. While franchisees can request approval for alternative products or suppliers under certain conditions, Dq Treat retains the right to designate single approved manufacturers or suppliers for specific items, further emphasizing the franchisor's control over the supply chain.
Understanding the scope of 'products' and the associated restrictions is crucial for potential Dq Treat franchisees. It highlights the importance of carefully evaluating the approved supplier network, pricing, and product specifications during the due diligence process. Franchisees should also inquire about the frequency of product list updates and the process for requesting approval of alternative suppliers to fully understand the operational constraints and potential costs associated with these requirements.