When are prepaid rent and security deposits due for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
tment**
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount for Captive- Venue Location(1) P | Amount for Street Location(1) P | Method of Payment | When Due | To Whom Payment Is to Be Made(2) P |
|---|---|---|---|---|---|
| Initial Franchise | $25,000 | $25,000 | Lump sum | When submit | ADQ |
| Fee(3) | franchis |
Source: Item 7 — Estimated Initial Investment (FDD pages 24–29)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, prepaid rent and security deposits are due prior to opening a location. The estimated cost for prepaid rent and security deposits ranges from $2,500 to $5,500, whether the location is a Captive-Venue or Street location. These payments are made in a lump sum to the landlord.
Item 7 of the FDD also indicates that franchisees will usually be required to pay one month's base rent as a security deposit to the landlord. For a 750 square foot location, the base rent is estimated to be between $3,500 and $7,000 per month, but could be more. In addition to base rent, franchisees may also be required to pay 8% to 12% of gross sales exceeding a specified amount, which is credited to the base rent. Actual rent costs will vary based on factors such as store size, geographic location, and costs assumed by the landlord.
Prospective Dq Treat franchisees should carefully review the lease terms and negotiate favorable conditions, as leases typically include obligations for common area maintenance, insurance, real estate taxes, and other charges. Understanding these costs is crucial for accurate financial planning and ensuring the long-term profitability of the franchise.