What is the initial transfer fee for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount(1) P | Due Date(5) P | Remarks |
|---|---|---|---|
| Lease-Required Sales Promotion Fees | Will vary under circumstances | When due | In addition to the sales promotion program fees above, you must pay all sales promotion fees and comply with all sales promotion requirements required by your lease or sublease. |
| Transfer Fee (for franchise agreement) | $6,000 | When you submit transfer application | Effective January 1, 2030, and each 5 years thereafter, the transfer fee increases by $500. If ADQ refuses to consent to your proposed transfer or exercises its right of first refusal, ADQ will return the transfer fee, less any actual expenditures or disbursements that ADQ makes in direct connection with processing the proposed transfer. |
Source: Item 6 — Other Fees (FDD pages 20–24)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the transfer fee for a franchise agreement is $6,000. This fee is due when you submit the transfer application.
It's important to note that this fee is subject to change. Specifically, the FDD states that effective January 1, 2030, and every 5 years thereafter, the transfer fee will increase by $500. Therefore, a prospective Dq Treat franchisee should factor in potential increases to this fee in the future.
The FDD also specifies that if ADQ (presumably Dq Treat's parent company or an affiliate) refuses to consent to the proposed transfer or exercises its right of first refusal, Dq Treat will return the transfer fee. However, Dq Treat may deduct any actual expenditures or disbursements that it makes in direct connection with processing the proposed transfer. This means that while the base fee is refundable under certain conditions, the franchisee may still incur costs if the transfer is not approved.