What is the length of the initial term of the Participation Agreement for Dq Treat franchisees?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- **4.
Term**.
The initial term of this Participation Agreement shall begin when executed by Participating Location and continue for a period of five (5) years from the date of Activation of the Subscription Software Services at Participating Location, unless earlier terminated by either PAR or Participating Location pursuant to the terms set forth in this Participation Agreement (the "Initial Term").
For purposes of this Participation Agreement, Activation shall be the date that the Participating Location is able to access the Subscription Software Services to process a sales transaction for a customer.
Thereafter, this Participation Agreement shall automatically renew at the end of the Initial Term for additional successive periods of one (1) year (the "Renewal Term(s)").
The Initial Term and the Renewal Term(s) shall be referred to herein collectively as the "Term".
Participating Location may terminate this Participation Agreement for convenience, at any time, for any reason upon thirty (30) days' notice to PAR (subject to payment of all remaining payments for Equipment and Installation Services purchased under any financing agreement or payable under any Conversion Letter, if applicable).
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 initial term of the Participation Agreement begins when executed by the Participating Location and continues for five years from the date of Activation of the Subscription Software Services. Activation is defined as the date the Participating Location can access the Subscription Software Services to process sales transactions. This initial period is referred to as the "Initial Term."
Following the Initial Term, the Participation Agreement automatically renews for additional one-year periods, referred to as "Renewal Term(s)." The Initial Term and any Renewal Terms are collectively called the "Term." This means that after the initial five-year period, the agreement will continue to renew annually unless action is taken to terminate it.
However, the Participating Location has the option to terminate the Participation Agreement for any reason by providing PAR with thirty days' notice. This termination is subject to the Participating Location fulfilling all remaining payments for Equipment and Installation Services purchased under any financing agreement or payable under any Conversion Letter, if applicable. This provides some flexibility for the franchisee but also carries a financial responsibility to settle any outstanding obligations.