How much of the initial franchise fee for a Dq Treat franchise is a non-refundable deposit?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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Initial Franchise Fee
You must pay ADQ a $25,000 initial franchise fee for a single franchise, the first $10,000 of which is a non-refundable deposit due when you submit a franchise application, which is included in this disclosure document as Exhibit D. The balance of the initial franchise fee is due when ADQ approves the franchise application and issues a written consent letter. You do not pay an initial franchise fee if you are a conversion franchisee, an existing franchisee relocating a restaurant under ADQ's relocation policy, or an existing Orange Julius® franchisee converting an Orange Julius® location to a DQ® Treat location.
The initial $10,000 deposit is not refundable and the balance of the initial franchise fee is refundable only in the following instances: (1) if you withdraw your application after ADQ has approved it but before you commence construction; (2) if your required training attendees fail to successfully complete the training program and your approval is cancelled (see Item 11 for information on required training attendees); (3) if your site is not designated and ADQ does not consent to the site within 90 days after the date ADQ approves your application; or (4) if you have not commenced construction within 180 days from the franchise agreement effective date. In these instances, ADQ has the right to cancel any agreements that have been signed with ADQ without opportunity to cure.
ADQ may charge a reduced, non-refundable initial franchise fee in certain situations, including: (1) when a franchisee is opening a franchise in a previously closed location; (2) certain Captive-venue locations, including those in airports, colleges and universities, and with certain national food service operators specializing in providing food service in these types of locations; and (3) for operators with multiple DQ® locations who have developed one or more new franchises with ADQ in the past five years, who have an ADQ certified multi-unit operator training program, and have a full time construction supervisor on staff.
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Source: Item 5 — Initial Fees (FDD pages 19–20)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the initial franchise fee for a single franchise is $25,000. A portion of this fee, specifically $10,000, is a non-refundable deposit that must be paid when the franchise application is submitted. This deposit is included in the disclosure document as Exhibit D. The remaining balance of the initial franchise fee is due upon ADQ's approval of the franchise application and issuance of a written consent letter.
However, the FDD outlines certain situations where the balance of the initial franchise fee may be refundable. These instances include withdrawing the application after ADQ approval but before construction begins, failure of required training attendees to complete the training program successfully, failure to designate a site within 90 days of application approval, or failure to commence construction within 180 days from the franchise agreement's effective date. In these cases, Dq Treat reserves the right to cancel any signed agreements without an opportunity to cure.
Dq Treat may also charge a reduced, non-refundable initial franchise fee in specific situations. These include opening a franchise in a previously closed location, certain captive-venue locations like airports or colleges, and for operators with multiple Dq Treat locations who have developed new franchises with Dq Treat in the past five years, have a certified multi-unit operator training program, and employ a full-time construction supervisor. It is important to note that neither Dq Treat nor its affiliates provide financing for any part of the initial franchise fee.