What is the purpose of ADQ convening a committee from the FAC annually for Dq Treat?

According to the 2025 Dq Treat Franchise Disclosure Document, ADQ (American Dairy Queen Corporation) annually convenes a committee from the Franchise Advisory Council (FAC) to conduct their own review of the accounting for the marketing funds applicable to each system. This process allows franchisees to have oversight regarding how marketing funds are being utilized within the Dq Treat system.

The Franchise Advisory Council advises ADQ on marketing, advertising, and other matters, but solely in an advisory capacity. The FAC is comprised of members that are chosen or elected in a specific manner. DMA (Designated Market Area) chairpersons, elected by franchisees from ten U.S. regions, elect one DMA chairperson to serve as the region's representative on the FAC. The Canadian Franchise Advisory Council (CFAC), elected by Canadian franchisees, selects two representatives. The Dairy Queen Territory Operator Organization (DQTOO) or the DQTOO board, chooses two territory operator representatives. ADQ also reserves the right to appoint two "at large" franchisee members to the FAC and to form committees that will work with the FAC at any time on any matter.

This setup ensures that franchisees have a voice in marketing and advertising decisions, and that they can review the accounting of marketing funds. However, it is important to note that the FAC's role is purely advisory, and ADQ has the final say in all decisions. ADQ also has the power to form, change, or dissolve the FAC or any of its committees, and has the right to change how franchisee membership on the FAC or any committee is determined. This means that while franchisees have input, ADQ ultimately controls the structure and function of the FAC.