How often is the accounting for Dq Treat national and DMA activities reviewed?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The accounting for the funds used for DQ® national and DMA activities and materials are reviewed by an independent national accounting firm on an annual basis. This "review" consists principally of applying analytical procedures to the financial data and of making inquiries of persons responsible for financial and accounting matters. ADQ currently makes available to DQ® franchisees a copy of the annually prepared statements of contributions, expenditures and balance for the national (NMF), DMA (consolidated) and individual DMA in which your restaurant is located along with the Independent Accountants' Review Report. In addition, each DMA can request that an audit of its DMA activities be conducted at the expense of that DMA. Orange Julius® sales promotion program fees are accounted for by ADQ on an annual basis and a statement of contributions, expenditures and balance is prepared by ADQ and available for review. ADQ annually convenes a committee from the FAC to conduct their own review of the accounting for the marketing funds applicable to each system.
Source: Item 11 — UItem 11U***:** U**Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 37–47)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, the accounting for funds used for national and DMA (Designated Market Area) activities and materials are reviewed annually by an independent national accounting firm. This review primarily involves applying analytical procedures to financial data and making inquiries of individuals responsible for financial and accounting matters.
Annually, Dq Treat provides franchisees with statements of contributions, expenditures, and balances for the national (NMF), DMA (consolidated), and individual DMA in which the restaurant is located, along with an Independent Accountants' Review Report. This allows franchisees to see how funds are being allocated and spent at the national and local levels.
Additionally, each DMA has the option to request an audit of its DMA activities, but the expense of this audit would be borne by that specific DMA. Orange Julius sales promotion program fees are also accounted for by ADQ on an annual basis, with a statement of contributions, expenditures, and balance prepared by ADQ and available for review. A committee from the Franchise Advisory Council (FAC) convenes annually to conduct their own review of the accounting for the marketing funds applicable to each system, providing another layer of oversight.