How often must a Dq Treat franchisee modernize their building, premises, equipment, signage, and grounds?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
You must modernize your building, premises, equipment, signage and grounds to conform to ADQ's then-current standards for similarly situated new DQ® restaurants when you renew your franchise, on transfer of the franchise under certain circumstances, and every 10 years or any shorter period required by any applicable lease or sublease for the premises.
Source: Item 8 — UItem 8U***:** U**Restrictions on Sources of Products and Services (FDD pages 29–35)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, franchisees are required to modernize their building, premises, equipment, signage, and grounds to meet Dq Treat's current standards for new, similarly situated restaurants. This modernization is required when the franchise is renewed, when the franchise is transferred under certain circumstances, and every 10 years. However, if any applicable lease or sublease for the premises requires a shorter period for modernization, that shorter period will take precedence.
This requirement ensures that all Dq Treat locations maintain a consistent and up-to-date image, which is crucial for brand recognition and customer experience. Franchisees need to factor in the potential costs of these periodic modernizations into their long-term financial planning. These costs can be significant, as they involve updating the physical appearance and functionality of the restaurant to align with Dq Treat's evolving brand standards.
The modernization requirement is fairly standard in the franchise industry, as franchisors seek to maintain a uniform brand image across all locations. However, the specific frequency and scope of required modernizations can vary. Prospective Dq Treat franchisees should carefully review their lease agreements and subleases to understand if those documents impose modernization requirements that are more frequent than the standard 10-year period. They should also inquire about the typical cost and scope of these modernizations to better prepare for these expenses.
It is important for potential franchisees to understand the financial implications of these modernization requirements and to factor them into their business plans. Failing to comply with these requirements could result in a breach of the franchise agreement and potential loss of the franchise.