Who must the insurance policy obtained by a Dq Treat licensee name as an additional insured?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
vided are specifically limited to those that are described in the attached Exhibit "A" and are not intended to provide a "turn-key" service to the Licensee. ADQ is not responsible for ensuring that the restaurant to be constructed complies with building standards or legal requirements, including, but not limited to, architectural, structural, mechanical, electrical, accessibility (including without limitation those under the Americans with Disabilities Act), and other standards.
- 5. Additional Billing: If ADQ's construction consultant must be on site for purposes of consulting longer than specified in Exhibit "A" due to delays or complications beyond the control of ADQ, the Licensee agrees to pay ADQ an additional sum of $200.00 per day for each day the construction consultant is available on site. Should the construction consultant have to make a return visit, related travel expenses, including, but not limited to, air travel, meals and lodging, will be added to the daily $200.00 fee.
- 6. Liability and Indemnification: Licensee waives all claims against ADQ fo
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, the insurance policy that a licensee obtains must name American Dairy Queen Corporation (ADQ) and its affiliates as an additional insured. This requirement ensures that Dq Treat, as the franchisor, is protected from potential liabilities related to the operation of the franchise.
Specifically, the insurance coverage must protect the licensee, ADQ, ADQ's affiliates, and any other person or entity designated by ADQ from liability for any damage or injury. This broad coverage requirement means that the franchisee's insurance policy must extend protection beyond just the franchisee to include the franchisor and related parties.
This requirement is typical in franchising, as franchisors want to mitigate risks associated with their franchisees' operations. The franchisee is also obligated to provide ADQ with a certificate of insurance and other endorsements to prove compliance with this requirement. Additionally, the insurance policy must provide ADQ with 30 days' prior written notice of any material changes, termination, or cancellation of the policy, allowing ADQ time to ensure continuous coverage.