How long is the term of the Dq Treat agreement if it is signed as a requirement of renewal?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Term. The term of this agreement starts on the Effective Date and, unless earlier terminated under section 13, runs for:
- (C) The renewal term specified in the expiring operating agreement, if this agreement is signed as a requirement of renewal
- 4.3 Renewal. If the following conditions are met, Licensee may renew its license for an additional renewal term, which will be the shorter of 15 years or the period that Licensee has the right to maintain possession of the Restaurant premises:
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, the term of the operating agreement, if signed as a requirement of renewal, is the renewal term specified in the expiring operating agreement.
However, the renewal term is not a fixed period. Instead, it is the shorter of 15 years or the period that the franchisee has the right to maintain possession of the restaurant premises. This means the length of the renewal term is heavily dependent on the terms of the underlying lease agreement for the restaurant location.
This conditionality introduces an element of uncertainty for prospective Dq Treat franchisees. The renewal term could be significantly shorter than 15 years if the lease does not extend that far, impacting the franchisee's long-term business planning and potential return on investment. Franchisees should carefully consider their lease terms and negotiate for longer lease durations to maximize their potential renewal term.