Is the payment for equipment generally refundable for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- (10) Your investment in equipment and fixtures is highly variable for your store. The investment depends to a great extent on the size of the building or space and whether you are in a Captivevenue or Street location. The investment also depends on the size and location of your store, the anticipated traffic through the store, local labor costs, current prices charged by equipment suppliers, discretionary expenditures, inflation, financing costs and similar factors beyond ADQ's or your control. Equipment payments generally are not refundable. Investment obligations beyond the initial cash outlay requirements will be necessary and you may finance at your discretion. Market forces will determine loan repayment totals and interest on borrowings will be determined by market forces at the time of any financing transaction.
Source: Item 7 — Estimated Initial Investment (FDD pages 24–29)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, payments for equipment are generally not refundable. The investment in equipment and fixtures can vary significantly based on factors such as the size of the store, whether it is a Captive-venue or Street location, anticipated traffic, local labor costs, and current prices from equipment suppliers. These factors are largely beyond the control of both the franchisee and ADQ.
Prospective Dq Treat franchisees should be aware that the cost of equipment, which includes signs and point-of-sale systems, can range from $220,000 to $360,000 for a Captive-venue location and from $360,000 to $420,000 for a Street location. These payments are typically made as a lump sum or as a down payment with the balance financed, usually upon placing the order with third-party suppliers. Given that these payments are generally non-refundable, franchisees should carefully consider their equipment needs and financing options.
It is important for potential Dq Treat franchisees to conduct thorough due diligence and consult with business advisors to fully understand the financial implications of investing in equipment and fixtures. They should also inquire about any potential financing options and the terms and conditions associated with equipment purchases to mitigate financial risks.