Is the Dq Treat licensee responsible for the expenses associated with ongoing training for themselves and their employees?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
pre-opening training requirements for the Restaurant within 6 months prior to the Restaurant opening. If Licensee fails to comply with Company's pre-opening training requirements to Company's reasonable satisfaction, Licensee cannot open or operate the Restaurant.
- 7.2 Ongoing Training. Licensee and its employees must meet Company's ongoing training requirements at Licensee's expense.
- 7.3 Training upon Default. If Licensee is in default of this agreement for failure to meet any operational standards, Company may require Licensee to comply with additional training requirements prescribed by Company at Licensee's expense as a condition of curing the default.
- 7.4 In-Restaurant Training Program. Company may periodically make available, or provide electronic or another form of access, to Licensee an inrestaurant training program at Licensee's expense. Licensee may purchase Company's in-restaurant training program and training updates.
- 7.5 Supervision. Licensee must maintain and operate the Restaurant at the Authorized Location under Licensee's active and continuous supervision in compliance with the System, on the terms of this agreement. At all times for the Restaurant, Licensee must have a Designated Manager and one Assistant Manager if the Restaurant is Licensee's first DQ® treat restaurant, or only a Designated Manager if the Restaurant is License's second or more DQ® treat restaurants, who have all successfully completed all training required by Company prior to starting any management duties. Any new or replacement Designated Manager or Assistant Manager must meet Company's then current training requirements for DQ® treat restaurant managers.
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 licensee is responsible for expenses related to ongoing training for themselves and their employees. Specifically, the licensee and their employees must meet Dq Treat's ongoing training requirements at the licensee's expense.
Furthermore, if a Dq Treat licensee defaults on the agreement by failing to meet operational standards, Dq Treat may require the licensee to complete additional training at the licensee's expense as a condition to resolve the default. Dq Treat may also periodically offer an in-restaurant training program to the licensee, with the licensee bearing the cost. The licensee can also purchase Dq Treat's in-restaurant training program and any updates at their own expense.
The FDD also states that the licensee is responsible for any applicable tuition or fees, the salaries, wages, benefits, travel and living expenses, and other related costs for all individuals affiliated with the licensee and the restaurant who attend any initial training, ongoing training, other training, and meetings. The controlling owner must also attend all meetings Dq Treat holds or sponsors in the licensee's area or region at the licensee's expense. If the controlling owner cannot attend, they must send a substitute, acceptable to Dq Treat, at the licensee's expense.