How much notice must a Dq Treat franchisee or sub-franchisee provide to GIFT to terminate the Participation Agreement without cause or penalty?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything herein to the contrary, Participating Franchisee or Sub-Franchisee has the right to terminate this Participation Agreement, without cause and without any penalty fee, upon no less than sixty (60) days' prior written notice to GIFT, with a copy of such notice to Client.
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, a franchisee or sub-franchisee has the right to terminate the Participation Agreement without cause or penalty by providing no less than sixty (60) days' prior written notice to GIFT. The franchisee must also send a copy of this termination notice to Client, which is DQ GC Inc. This allows the franchisee to end the agreement without facing any financial repercussions, provided they adhere to the written notice requirement.
This termination clause offers Dq Treat franchisees a degree of flexibility, allowing them to exit the Participation Agreement if their business needs change or if they are dissatisfied with the services provided by GIFT. The requirement for written notice ensures that GIFT has sufficient time to prepare for the termination and to make any necessary adjustments to their service delivery. Sending a copy of the notice to Client (DQ GC Inc.) ensures transparency and keeps all parties informed of the franchisee's decision.
It's important to note that this specific termination right applies only when the franchisee terminates the agreement without cause. Other termination scenarios, such as termination for a material breach or due to insolvency, may have different notice requirements or immediate termination provisions as outlined elsewhere in the Participation Agreement. Franchisees should carefully review the entire agreement to understand all termination conditions and their associated obligations.
This type of termination clause is relatively common in franchise agreements, as it provides a mechanism for franchisees to exit the agreement under certain conditions without incurring penalties. However, the specific notice period can vary, with some agreements requiring shorter or longer periods depending on the nature of the services provided and the potential impact of termination on the franchisor's operations.