What information is provided about the ownership structure of Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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SECTION I GENERAL INFORMATION
| 1. | Please indicate the type of franchise you are applying for: | |
|---|---|---|
| | | |
| | DQ Treat Store | |
| DQ Grill & Chill Restaurant | DQ Texas Restaurant | |
| 2. | Please indicate your preferred location for the franchise: | |
| 3. | If you are granted a franchise, when will you be able to commence operations? | |
| 4. | Is this application part of a multi-unit development agreement? | Yes No |
INSTRUCTIONS
- 1. If you are applying for a franchise on behalf of a corporation, limited liability company, partnership or other business entity, you must complete all sections of this application and you must submit with your application copies of the following:
- a) For a corporation, the articles of incorporation, by-laws or shareholders agreement, or other documentation evidencing that the corporation has been duly formed and its ownership structure.
- b) For a limited liability company, the articles of organization, operating agreement, or other documentation evidencing that the company has been duly formed and its ownership structure.
- c) For a partnership, the partnership agreement.
- 2. If you are applying to hold the franchise as an individual, you must complete all sections of this application, except for Section II.
- 3. Please be advised that, when forming a corporation, limited liability company, legal partnership or operating company, you must not use DQ Grill & Chill®, Dairy Queen®, DQ®, Blizzard® Orange Julius®, or any other trademarks of IDQ Companies or its subsidiaries in your business name, as it constitutes an improper use of our trademarks and avoids the cost of having to change the name at a later date.
SECTION II BUSINESS ENTITY INFORMATION (to be completed if applying on behalf of a business entity)
If you are applying on behalf of, and desire to hold a franchise through, a business entity (corporation, limited liability company or partnership), you must complete this Section II on behalf of the business entity, and each shareholder, member or partner must complete Section III of this Application. All shareholders, members or partners, as the case may be, must be bound by a buy-out agreement with respect to their interest in the franchise or franchisee entity.
If you desire to hold a franchise through a business entity that has yet to be formed, you should include in Section III all individuals that will have an ownership interest in the future business entity. If your application is approved, we will prepare the Operating Agreement in the names of the individual
® and © Am. D.Q. Corp.
applicants but will allow an assignment to the business entity (once it is formed and approved by Company), without payment of any additional fee, prior to opening.
| 1.
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, if a prospective franchisee is applying on behalf of a business entity such as a corporation, limited liability company, or partnership, they must provide documentation evidencing the entity's formation and ownership structure. Specifically, corporations must submit articles of incorporation, by-laws, or shareholder agreements. Limited liability companies need to provide articles of organization or an operating agreement. Partnerships are required to submit their partnership agreement. If applying as an individual, the applicant does not need to complete the section on business entity information.
The FDD also states that if a franchisee desires to hold a franchise through a business entity, each shareholder, member, or partner must complete a section of the application and be bound by a buy-out agreement regarding their interest in the franchise entity. If the business entity is not yet formed, all individuals with an ownership interest in the future entity should be included in the application. Dq Treat also specifies that its trademarks cannot be used in the business name of the formed entity.
The FDD defines an "Owner" as any person or entity who directly or indirectly owns an interest in the Licensee. This includes shareholders, members, or owners of a corporation or LLC; general partners of a partnership; and grantors, beneficiaries, or fiduciaries of a trust. If the Licensee is more than one individual, each individual is considered an Owner. The Owners are to be identified on an Ownership Addendum attached to the franchise agreement. A "Principal Owner" is defined as any Owner who directly or indirectly owns a 10% or greater interest in Licensee.