What is the 'Operated Locations, Participating Franchisee or Sub-Franchisee Account' for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Operated Locations, Participating 2.2 Franchisee or Sub-Franchisee shall establish and maintain a deposit account(s) (the "Operated Locations, Franchisee or Sub-Franchisee Account") at an insured depository institution (the "Depository") for the settlement of Card transactions and other transactions as authorized from time to time in the Program Procedures (as defined below, and collectively referred to as "Card Transactions").
Operated Locations, Participating Franchisee or Sub-Franchisee must provide Client
with an ACH Authorization in the form of Exhibit A hereto, and by executing this Participation Agreement, hereby confirms its authorization of Client and its service providers (including GIFT and Affiliated Processor, acting on behalf of Client) to initiate debit and credit entries to the Operated Locations, Participating Franchisee or Sub-Franchisee Account as necessary or appropriate to effect any Card transaction and all adjustments and corrections thereto, and as necessary or appropriate to effect any other transfer contemplated by this Participation Agreement. Operated Locations, Participating Franchisee or Sub-Franchisee shall comply with and be bound by any applicable law and the rules and regulations of the National Automated ClearingHouse Association as in effect from time to time.
- Returned Items.
In the event that any debit to Participating Franchisee or Sub- Franchisee Account is 1.5 returned for any reason, including but not limited to, insufficient funds, Participating Franchisee or Sub-Franchisee authorizes Client and its service providers, acting on behalf of Client, to initiate a debit to the Participating Franchisee or Sub-Franchisee Account as set forth in the form of Exhibit A for the original debit amount plus any associated returned item fees (including, but not limited to the "Returned Item Fee" set forth on Exhibit C hereto).
Nothing herein shall be construed to limit Client (as third party beneficiaries under this Participation Agreement) or GIFT's ability to collect any amounts owed under this Participation Agreement, and Client (as third party beneficiaries under this Participation Agreement) and GIFT expressly reserve the right to exercise any and all rights and remedies available under applicable law.
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 Franchise Disclosure Document, an 'Operated Locations, Franchisee or Sub-Franchisee Account' refers to a deposit account that the franchisee must establish and maintain. This account is held at an insured depository institution for the settlement of card transactions and other transactions authorized within the Program Procedures.
This account is crucial for processing transactions related to the Dq Treat gift card program. Dq Treat franchisees are required to provide Client (DQ GC Inc.) with an ACH Authorization, allowing the Client and its service providers to initiate debit and credit entries to the franchisee's account. This authorization covers card transactions, adjustments, corrections, and any other transfers contemplated by the Participation Agreement.
If any debit to the franchisee's account is returned due to insufficient funds or any other reason, Dq Treat franchisees authorize the Client and its service providers to initiate a debit to cover the original amount, along with any associated returned item fees. This ensures that all transactions are settled promptly and efficiently. The FDD also states that nothing limits Client or GIFT's ability to collect amounts owed under the Participation Agreement, and they reserve the right to exercise any and all rights and remedies available under applicable law.
In practical terms, this means Dq Treat franchisees need to ensure they have a reliable banking relationship and sufficient funds in the designated account to cover all card transactions and related fees. Failure to maintain adequate funds or comply with the ACH authorization could lead to additional fees, legal remedies, or potential issues with participation in the gift card program.