How long was the initial exchange rate maintained for Dq Treat locations in Canada?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ding the foregoing, if PAR agrees to cancel any Sales Order, PAR may condition such cancellation on Customer paying a 10% restocking fee for any Equipment or other items returned to PAR.
Price Increases: Beginning on the calendar year starting January 1, 2021 pricing is subject to an annual increase based on an amount equal to the lesser of 2% or the amount of Consumer Price Index ("CPI") increase calculated based on the immediately preceding unadjusted 12 months (10/01 through 9/30), derived from the U.S. Department of Labor, Bureau of Labor Statistics web site, https://www.bls.gov/news.release/cpi.nr0.htm. Price increases will take effect February 1 of the then current calendar year. PAR will communicate prices increases to Participating Location in writing via email by January 15th.
Exchange Rate for Participating Locations in Canada. Participating Locations in Canada who are purchasing Equipment and Installation Services via an upfront payment may elect to pay for all Equipment and Services in USD or CAD. Participating Locations in Canada who are financing Equipment and Installation Services must pay in CAD for all Equipment and Services subject to the following. The exchange rate for Participating Locations in Canada whom elect to pay in CAD will be set for the spot rate of USD/CAD by the Wall Street Journal as reported by http://www.wsj.com/public/page/news-currency-currencies-trading.html on the Effective Date of the Master Hardware and Software Agreement between ParTech, Inc. and American Dairy Queen Corporation.
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 Franchise Disclosure Document, the initial exchange rate for participating locations in Canada was maintained for one year. Specifically, for Canadian locations purchasing equipment and installation services with an upfront payment and electing to pay in Canadian dollars, the exchange rate was set based on the spot rate of USD/CAD reported by the Wall Street Journal on the effective date of the Master Hardware and Software Agreement between ParTech, Inc. and American Dairy Queen Corporation.
This initial exchange rate was maintained by PAR for a period of one year starting from February 1, 2019. After this initial period, the exchange rate was revised annually. On January 1 (or the next business day) of each subsequent year, a new exchange rate was determined by averaging the spot rates from the prior calendar year (January 1 – December 31) of USD/CAD, again based on the Wall Street Journal's reporting. This new rate was then communicated to the participating locations in writing via email within five days of its determination.
The annually calculated new exchange rate takes effect on February 1 of the current calendar year and applies to purchases of equipment, installation services, subscription software services, PARPay Services, Advance Exchange Services, and On-Site Remedial Maintenance Services. This means that while the initial rate was fixed for the first year, franchisees should expect an adjusted rate each year based on the previous year's average spot rates, impacting the cost of various services and equipment.