Does the Dq Treat Operating Agreement include an Ownership Addendum?

According to the 2025 Dq Treat FDD, the Operating Agreement does include an Ownership Addendum. The FDD specifies that the owners of the Dq Treat franchise must be identified on this addendum, which is attached to the agreement. This includes each shareholder, member, or owner of a corporation or limited liability company, each general partner of a partnership, and each grantor, settlor, beneficiary, trustee, or other trust fiduciary of a trust. If the licensee is more than one individual, each individual is considered an owner.

For prospective franchisees, this means that Dq Treat requires full transparency regarding the ownership structure of the franchise. If the franchisee is a business entity, all owners must sign a personal undertaking and guarantee attached to the franchise agreement. Furthermore, franchisees must notify Dq Treat in writing of any changes in ownership.

The requirement to identify all owners in the Ownership Addendum ensures that Dq Treat knows who is ultimately responsible for the franchise's operation and compliance with the franchise agreement. This is a common practice in franchising, as it allows the franchisor to maintain control over who is operating under their brand and to enforce the terms of the agreement effectively. This also allows Dq Treat to maintain standards and protect its brand reputation by ensuring that all individuals with a significant stake in the franchise are committed to upholding the brand's values and operational guidelines.

Prospective franchisees should carefully consider the implications of the Ownership Addendum, particularly if they plan to operate the franchise through a business entity. They should also be prepared to provide detailed information about all owners and to ensure that all owners are willing to sign the personal undertaking and guarantee. Any changes in ownership must be promptly reported to Dq Treat to remain in compliance with the franchise agreement.