When is the non-refundable renewal fee due for a Dq Treat franchise agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ent 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, a franchisee must pay a non-refundable renewal fee if they meet certain conditions and wish to renew their license for an additional term. 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 amount of this renewal fee is $1,000 times the number of years included in the renewal term, including partial years, but will not exceed $10,000.
For example, if the renewal operating agreement is for 7½ years, the renewal fee would be $8,000. This fee is due 30 days before the expiration of the current agreement.
It is important to note that the terms of the then-current operating agreement may differ materially from the current agreement, including higher or additional fees. The franchisee must also be in good standing, have complied with modernization and replacement provisions, and have the right to maintain possession of the restaurant premises to be eligible for renewal.