How long is the term of the Dq Treat agreement if it is signed as a requirement of a transfer?
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:
- (A) 15 years after the target opening date, as determined by Company, if for a new DQ Treat franchise;
- (B) The lesser of 15 years or the remaining term of the transferring licensee's operating agreement, if this agreement is signed as a requirement of a transfer; or
- (C) The renewal term specified in the expiring operating agreement, if this agreement is signed as a requirement of renewal
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 term of the agreement varies depending on the situation. If the agreement is signed as a requirement of a transfer, the term lasts for the lesser of 15 years or the remaining term of the transferring licensee's operating agreement. This means a new franchisee taking over an existing Dq Treat location will not necessarily get a full 15-year term.
This condition is important for prospective franchisees to understand, as it directly impacts the length of time they can operate the Dq Treat franchise under the terms of the agreement. If the original franchisee had only a few years left on their agreement, the new franchisee will also have a similarly short term unless they renew the agreement.
In contrast, if a franchisee is signing the agreement for a new Dq Treat franchise, the term is 15 years after the target opening date. Similarly, if the agreement is signed as a requirement of renewal, the term is the renewal term specified in the expiring operating agreement.