When is the new exchange rate determined each year for Dq Treat locations in Canada?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Participating Locations in Canada who are purchasing Equipment and Installation Services via an upfront payment may elect to pay for all Equipment and Services in USD or CAD. Participating Locations in Canada who are financing Equipment and Installation Services must pay in CAD for all Equipment and Services subject to the following. The exchange rate for Participating Locations in Canada whom elect to pay in CAD will be set for the spot rate of USD/CAD by the Wall Street Journal as reported by http://www.wsj.com/public/page/news-currency-currencies-trading.html on the Effective Date of the Master Hardware and Software Agreement between ParTech, Inc. and American Dairy Queen Corporation. The exchange rate will be maintained by PAR for a period of one (1) year from February 1, 2019 and then revised annually thereafter. On January 1 (or the next business day) of each year thereafter, the new exchange rate shall be determined based on an
average of the spot rate over the prior calendar year (January 1 – December 31) of USD/CAD by the Wall Street Journal as reported by on http://www.wsj.com/public/page/news-currency-currencies-trading.html and communicated to Participating Location in writing via email within five (5) days of such determination. The new exchange rate will be calculated on an annual basis for the remainder of the Term of your Participation Agreement. The annually calculated new exchange rate will take effect February 1 of the then current calendar year, and will apply to purchases of Equipment, Installation Services, existing and new purchases of Subscription Software Services, existing and new purchases of PARPay Services, existing and new purchases of Advance Exchange Services, and existing and new purchases of On-Site Remedial Maintenance Services.
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, for Canadian locations that elect to pay in CAD for equipment and installation services, a new exchange rate is determined annually. Specifically, on January 1st (or the next business day) of each year, the new exchange rate is calculated. This rate is based on the average spot rate of USD/CAD over the prior calendar year (January 1 – December 31) as reported by the Wall Street Journal. Dq Treat communicates this new exchange rate to participating locations in writing via email within five days of its determination.
This annually calculated exchange rate takes effect on February 1st of the current calendar year. It applies to various purchases, including equipment, installation services, existing and new subscription software services, PARPay Services, Advance Exchange Services, and On-Site Remedial Maintenance Services.
For a prospective Dq Treat franchisee in Canada, this means that the exchange rate used for many of their expenses will be reset each February 1st, providing a degree of predictability based on the prior year's average exchange rates. However, franchisees should be aware that this rate is subject to change annually and can impact their overall costs, especially for equipment and services purchased in CAD.