When must a Dq Treat licensee's insurance coverage begin?
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 Dq Treat's 2025 Franchise Disclosure Document, a licensee's insurance coverage must begin no later than the date construction begins. The licensee is responsible for securing and maintaining liability insurance. The amount of coverage must be equal to the greater of $2,000,000 per occurrence, or a higher amount that ADQ may require of similarly situated licensees, the amount the lessor of the Restaurant premises may require, or the amount required under the Licensee's operating agreement for the location.
The insurance policy must include Dq Treat, its affiliates, and any other entities Dq Treat designates as insured parties. Additionally, the insurance must be written by a company with an AM Best Insurance Rating of no less than "A". Dq Treat must receive 30 days' prior written notice of any material changes, termination, or cancellation of the policy.
It is important for prospective Dq Treat franchisees to understand these insurance requirements, as failure to maintain adequate coverage could result in the franchisor securing insurance on their behalf and charging the franchisee for the costs. Franchisees should consult with insurance professionals to ensure they obtain the appropriate coverage to meet Dq Treat's requirements and adequately protect their business.