Does the Dq Treat Operating Agreement include a Renewal Addendum?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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If you are a current franchisee of an existing DQ® restaurant that has a contractual right to renew the existing franchise at the end of its initial term, and you meet ADQ's qualifying criteria for renewal, you will be required to sign the franchise agreement and the renewal addendum included in Exhibit B.
If you are purchasing or otherwise acquiring an existing DQ® Treat store, and you meet ADQ's qualifying criteria and requirements to obtain ADQ's consent for the transfer, you will be required to sign the franchise agreement included in Exhibit B.
Source: Item 22 — UItem 22U***:** U**Contracts (FDD page 67)
What This Means (2025 FDD)
Yes, according to the 2025 Dq Treat Franchise Disclosure Document, the Operating Agreement includes a Renewal Addendum. Specifically, Item 1 of the FDD indicates that if a franchisee meets the qualifying criteria for renewal and has a contractual right to renew their existing franchise, they will be required to sign the franchise agreement and the renewal addendum, which is included as Exhibit B to the FDD.
Furthermore, the Renewal Addendum modifies certain sections of the existing DQ® Treat Operating Agreement. For example, it addresses the modernization requirements, training obligations, and the term of the renewed agreement. The addendum also specifies that the franchisee must pay the renewal fee outlined in the expired agreement.
Additionally, if a franchisee renewing their Dq Treat franchise agreement entered into prior to April 2007 had a 6% continuing license fee and a modernization requirement, they must sign the Renewal Addendum. Their continuing license fee will remain at 6% until the modernization is complete, at which point it will decrease to 5%.