How often does the transfer fee for a Dq Treat franchise increase, and by how much?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount(1) P | Due Date(5) P | Remarks |
|---|---|---|---|
| Lease-Required Sales Promotion Fees | Will vary under circumstances | When due | In addition to the sales promotion program fees above, you must pay all sales promotion fees and comply with all sales promotion requirements required by your lease or sublease. |
| Transfer Fee (for franchise agreement) | $6,000 | When you submit transfer application | Effective January 1, 2030, and each 5 years thereafter, the transfer fee increases by $500. If ADQ refuses to consent to your proposed transfer or exercises its right of first refusal, ADQ will return the transfer fee, less any actual expenditures or disbursements that ADQ makes in direct connection with processing the proposed transfer. |
Source: Item 6 — Other Fees (FDD pages 20–24)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the transfer fee for a franchise agreement is subject to periodic increases. The initial transfer fee is $6,000, payable when the transfer application is submitted.
The transfer fee will increase every five years, starting January 1, 2030. Each increase will be $500. This means that a franchisee considering a transfer should factor in these potential fee increases, as the transfer fee could be higher depending on when the transfer occurs.
The FDD also specifies that if Dq Treat refuses the transfer or exercises its right of first refusal, the transfer fee will be returned to the franchisee. However, Dq Treat may deduct any actual expenditures or disbursements incurred while processing the proposed transfer. This condition highlights a potential risk where a franchisee may not receive a full refund of the transfer fee if the transfer is not completed due to Dq Treat's decision or actions.