How is the non-refundable renewal fee calculated for a Dq Treat franchise, and what is the maximum fee?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ight 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 the 2025 Dq Treat FDD, the renewal fee is calculated by multiplying $1,000 by the number of years included in the renewal term, including partial years. The maximum renewal fee is $10,000. This fee is non-refundable and must be paid 30 days before the current agreement expires.
For example, if a Dq Treat franchisee is renewing their operating agreement for 7½ years, the renewal fee would be $8,000. This means that even if the renewal term is not a whole number of years, the partial year is included in the calculation.
It is important for prospective Dq Treat franchisees to understand that the renewal fee is a significant cost associated with extending the franchise agreement. Franchisees should factor this fee into their long-term financial planning. Additionally, the franchisee must meet other conditions to be eligible for renewal, such as providing written notice of intent to renew, signing the current operating agreement, complying with modernization and replacement provisions, being in good standing, and having the right to maintain possession of the restaurant premises.