Does paragraph 1 of the Dq Treat Renewal Addendum change the modernization requirements under the Expired Agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Authorized Location: | |
|---|---|
| RENEWAL ADDENDUM TO DQ® TREAT OPERATING AGREEMENT is Addendum to DQ® treat operating agreement ("Agreement") is between American arry Queen Corporation ("Company") and ("Licensee"). Background • Company and Licensee signed a franchise agreement dated that expires on("Expired Agreement"). • Licensee wants to renew the franchise for the Authorized Location under the Agreement, except that Company and Licensee want to modify the Agreement. | |
| Th | erefore, the parties agree as follows. |
| 1. | Modernization Date. Licensee must complete the modernization required under the Expired Agreement by the earlier of or any transfer under the Agreement. This paragraph 1 does not change the modernization requirements under the Agreement. |
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, paragraph 1 of the Renewal Addendum does not change the modernization requirements under the Expired Agreement. It states that the franchisee must complete the modernization required under the Expired Agreement by the earlier of a specified date or any transfer under the agreement.
This means that if you are renewing your Dq Treat franchise, the modernization requirements that were in place under your original agreement remain in effect. You are still obligated to modernize your location as previously agreed upon. The renewal addendum simply clarifies the deadline for completing this modernization, tying it to either a specific date or the event of a transfer.
For a prospective franchisee, this highlights the importance of understanding the original franchise agreement's modernization requirements. Franchisees should review their existing agreement to fully understand their obligations. This ensures there are no surprises regarding modernization costs or timelines when renewing their Dq Treat franchise.