What is the initial term length for the Acumera agreement for a Dq Treat franchise location?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
13. Termination.
- 13.1. Master Termination. If Dairy Queen terminates the Master Agreement for an uncured material Breach of Contract, this Agreement will terminate immediately and no further fees will be due for Products or Services under this Agreement. Acumera may, at Acumera's option and expense, require Participating Location to return Products supplied under this Agreement. Termination shall not relieve Participating Location of the obligation to pay any Fees accrued or payable to Acumera prior to the effective date of termination. Should Participating Location elect to continue to use Acumera's Services past the date of termination of the Master Agreement, the portions of this Agreement which do not concern duties of Dairy Queen will remain in full force and effect, and Participating Location is responsible for all fees incurred as long as Services are being used. In no case will this Agreement extend beyond the Initial Term, if the Master Agreement has been terminated prior to the end of the Initial Term, or beyond the end of the current Renewal Term, if the Master Agreement has been terminated after the end of the Initial Term.
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 Franchise Disclosure Document, the Acumera agreement's initial term is addressed in section 13.1, which discusses master termination. The agreement will terminate immediately if Dairy Queen terminates the Master Agreement for an uncured material breach of contract. In this case, no further fees will be due for products or services under the agreement. Acumera has the option to require the participating location to return products supplied under the agreement, at Acumera's expense.
The document states that termination of the master agreement does not relieve the participating location of the obligation to pay any fees accrued or payable to Acumera before the termination date. If the participating location continues to use Acumera's services after the master agreement terminates, the parts of the agreement not concerning Dairy Queen's duties will remain in effect, and the participating location is responsible for all fees incurred as long as the services are used.
The Acumera agreement will not extend beyond the initial term if the master agreement is terminated before the end of the initial term. Similarly, it will not extend beyond the current renewal term if the master agreement is terminated after the initial term. This means that the initial term length is tied to the master agreement's duration, and early termination of the master agreement will also terminate the Acumera agreement.