What are the potential risks associated with operating a Dq Treat franchise in a specific geographic location?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
arket
Dairy Queen® products appeal to the general public, although certain products are targeted for particular customers. Your principal competition will be other quick service and fast casual food
restaurants and specialty ice cream treat outlets, specialty fruit beverage (primarily smoothies), snack food, or treat establishments, including members of other regional and national chains and franchise systems. Sales of Dairy Queen® products may be seasonal in areas of the United States with cooler climates during part of the year. The market for quick service food restaurants, specialty ice cream treat outlets, and specialty fruit beverage, snack food and treat establishments is well developed and highly competitive.
Licenses and Permits
In addition to laws and regulations that apply to businesses generally, DQ® Treat stores are subject to various federal, state and local government regulations, including those relating to site location and building construction; privacy and data security; food and menu labeling; storage, preparation and sale of food and beverage products including packaging and certain ingredient restrictions (e.g., those relating to trans fat); dairy and meat products; and health, sanitation and safety. ADQ strongly encourages you to investigate these regulations and other laws that may be applicable to your business before you purchase the franchise. It is your sole responsibility to abide by any applicable laws and regulations, and to obtain and keep in place all necessary licenses and permits.
Business of ADQ
ADQ's business includes administering its franchise system, establishing and conducting sales promotion programs for DQ® products and providing various services to its franchisees (see Items 8 and 11). In addition, since ADQ's incorporation, ADQ has operated DQ® restaurants and stores on an interim basis. ADQ does not operate any company-owned DQ® Treat stores as of the date of this disclosure document, although, as explained further below, ADQ's affiliate, DQTR, owns and operates two DQ Grill & Chill® restaurants.
In addition to the franchise offered under this franchise disclosure document, ADQ offers franchises for other concepts through separate franchise disclosure documents:
- DQ Grill & Chill®. ADQ offers single and multiple unit franchises for the operation of DQ Grill & Chill® restaurants, which are quick service food restaurants with indoor seating (and outdoor, in certain locations) from which a franchisee sells the full line of approved softserve, treat, food and beverage menu items.
- Texas DQ® Restaurant.
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, several factors could pose risks to a franchise based on its geographic location. The market for quick service food restaurants, specialty ice cream treat outlets, and specialty fruit beverage, snack food and treat establishments is well developed and highly competitive. This means a Dq Treat location will face competition from other national and regional chains. Sales of Dairy Queen products may be seasonal in areas of the United States with cooler climates during part of the year, which could impact revenue during certain months.
Additionally, Dq Treat stores are subject to various federal, state, and local government regulations, including those relating to site location and building construction; privacy and data security; food and menu labeling; storage, preparation and sale of food and beverage products including packaging and certain ingredient restrictions (e.g., those relating to trans fat); dairy and meat products; and health, sanitation and safety. Franchisees are solely responsible for abiding by all applicable laws and regulations and for obtaining and maintaining all necessary licenses and permits.
Finally, when entering into a franchise agreement, the franchisee is granted the right to operate a single store at an authorized location that ADQ has consented to in writing. The franchisee is not granted any minimum area or territory. If relocation is necessary due to circumstances like condemnation, landlord's relocation rights, or other approved reasons, relocation is permitted under specific conditions. These conditions include ADQ's approval of the new location, consistency with site selection guidelines, non-infringement on other franchisees' rights, adherence to construction timelines (30-90 days for Captive-venue, 180-120 days for Street locations), and compliance with ADQ's current standards and specifications.