What is a 'Participating Location' as defined in the Dq Treat FDD, and where can I find the relevant Participation Agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.13 "Participating Location" means any franchised location within the Dairy Queen® franchise system that has signed the relevant Participation Agreement set forth as Exhibit C hereto.
EXHIBIT C PARTICIPATION AGREEMENT
This Participation Agreement (this "Participation Agreement") is made effective as of the signature date of the Participating Location (as defined herein) below (the "Participation Agreement Effective Date") and is entered into by and between the undersigned franchisee entity (each, a "Participating Location") and Punchh Inc., with an address of 8383 Seneca Turnpike New Hartford, New York 13413 or Punchh (Canada) Inc. (collectively, "Punchh"); Punchh and Participating Location are sometimes referred to herein individually as a "Party" and collectively as the "Parties").
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, a Participating Location is defined as any franchised location within the Dairy Queen franchise system that has signed the relevant Participation Agreement. The Participation Agreement itself is set forth as Exhibit C to Item 17 of the FDD.
Exhibit C outlines the terms and conditions between the Participating Location (the franchisee entity) and Punchh Inc., which provides products and services related to the Dairy Queen loyalty program. This agreement establishes a direct relationship between Punchh and the Participating Locations, creating contractual privity and allowing for direct billing, especially for those locations not participating in the Dairy Queen National Marketing Fund.
Prospective Dq Treat franchisees should carefully review Exhibit C to understand their obligations and the services provided by Punchh. This includes understanding the fees, the term of the agreement, and the data processing terms outlined in Exhibit B, which is the Data Processing Addendum. Franchisees should also note that while they are bound by the terms of the Master Services Agreement between American Dairy Queen Corp. and Punchh, they are not equivalent to the Customer (American Dairy Queen Corp.) and do not have the same ownership rights.