What is the initial transfer fee for a Dq Treat franchise agreement, and how does it change over time?
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. |
| Renewal Fee (for franchise agreement) | $1,000 times number of years under renewal term (but not to exceed $10,000) | At time of renewal | Any partial year of the renewal term will count as a full year for purposes of calculating the renewal fee. For example, if at the end of the initial term of the franchise agreement, you enter into a renewal franchise agreement with a term of 7½ years, you will be required to pay a renewal fee of $8,000. |
| Audit and Recordkeeping Costs | Your contractual percentage continuing license fees and percentage sales promotion program fees times the amount of understated Gross Sales, plus any other amounts owed to us | After audit revealing understatement of Gross Sales by 3% or more | If an initial evaluation or audit reveals an understatement of Gross Sales by 3% or more, you must pay all costs for the audit, including salaries, outside accountant and attorneys’ fees, copying costs, postage, travel, meals, and lodging (“audit costs”), plus audit costs for any additional audits within 2 years after the initial evaluation or audit. |
Source: Item 6 — Other Fees (FDD pages 20–24)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the initial transfer fee for a franchise agreement is $6,000. This fee is due when the franchisee submits a transfer application to Dq Treat.
Importantly, the transfer fee is not fixed indefinitely. The FDD states that starting January 1, 2030, the transfer fee will increase by $500 every five years. This means that franchisees considering transferring their Dq Treat location should factor in these escalating costs, especially if the transfer occurs several years into the franchise term.
The FDD also clarifies that if Dq Treat refuses to consent to the proposed transfer or exercises its right of first refusal, the transfer fee will be returned to the franchisee. However, Dq Treat may deduct any actual expenditures or disbursements it incurred while processing the proposed transfer. This condition highlights a potential risk: a franchisee might not receive a full refund of the transfer fee if the transfer is denied after Dq Treat has already spent money on processing the application.