How long is the term of the Dq Treat agreement for a new franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
meritorious, then upon receiving written notice from Company, Licensee will, at its expense, immediately make such changes and use such substitutions to the Trademarks as Company requires.
4. TERM AND RENEWAL.
- 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
- 4.2 Expiration Date. Company will designate the expiration date of this agreement on the cover page and the date designated by Company shall control.
- 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:
- (A) Licensee gives Company written notice of its intent to renew between 3 6 months before the expiration of the term;
- (B) Licensee signs Company's then current operating agreement. The terms of the then current operating agreement may differ materially from this agreement, including higher or additional fees;
- (C) Licensee has complied with the modernization and replacement provisions of section 5.5;
- (D) Licensee is in good standing, including that it has satisfied all monetary obligations on a timely basis, and does not have a history of substantial noncompliance with the System or this agreement;
- (E) Licensee has the right to maintain possession of the Restaurant premises, and has provided written proof of its ability to remain in possession of the premises throughout the renewal period if leasing or subleasing;
- (F) Licensee pays Company a non-refundable renewal fee of $1,000 times the number of years (including partial years) included in th
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 franchise agreement for a new DQ Treat store is 15 years. The agreement starts on the effective date determined by Dq Treat and continues for 15 years after the target opening date, unless it is terminated earlier according to section 13 of the agreement. The expiration date will be designated on the cover page of the agreement, and that date will be the controlling date.
There are different term lengths if the agreement is signed as a requirement of a transfer or renewal. If the agreement is signed as a requirement of a transfer, the term is the lesser of 15 years or the remaining term of the transferring licensee's operating agreement. If the agreement is signed as a requirement of renewal, the term is the renewal term specified in the expiring operating agreement.
The franchisee has the option to renew the license for an additional term if certain conditions are met. These conditions include providing written notice of intent to renew between 3 to 6 months before the expiration of the term, signing Dq Treat's then-current operating agreement, complying with modernization and replacement provisions, being in good standing, having the right to maintain possession of the restaurant premises, and paying a non-refundable renewal fee. The renewal term will be the shorter of 15 years or the period that the franchisee has the right to maintain possession of the Restaurant premises.
The renewal fee is $1,000 times the number of years included in the renewal term, but not more than $10,000. For example, if the renewal operating agreement is for 7½ years, the renewal fee would be $8,000.