What radius from the authorized location is permitted for relocation of a Dq Treat Street location?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
When you enter into a franchise agreement, you are granted the right to operate a single store at an authorized location that ADQ has consented to in writing. You are not granted any minimum area or territory. If you must relocate because the franchised premises are condemned, exercise of a relocation right by your landlord, or some other reason that ADQ approves, you may relocate on the following conditions: (1) the new location must be acceptable to ADQ, reasonably suited for a DQ® Treat location, consistent with ADQ's site selection guidelines, and within the same building or venue as the authorized location if a Captive-venue location, or within a 500 meter radius of the authorized location if a Street location; (2) the new site must not infringe on the rights of any other DQ® franchisee; (3) the new store must be under construction within 30 days if a Captive-venue location or 180 days if a Street location; (4) after construction commences, the new store must be open and operating within 90 days if a Captive-venue location or 120 days if a Street location; and (5) the new store must be constructed and equipped in accordance with ADQ's then current standards and specifications.
ADQ has a relocation policy that permits qualifying franchisees with a Street location that sign a new franchise agreement and the relocation addendum to relocate a store within two miles of the current store location, provided the location is of the same type. For instance, a Street location outside of a mall cannot relocate within a mall. The timeframes detailed in the paragraph above apply to this relocation policy. Relocating franchisees do not need to pay an initial franchise fee, although relocating franchisees must meet the then-current training requirements (including payment of any fees and/or costs) and must purchase construction consultation services and prototype building plans (if the location is freestanding). See Item 7 for more information on these costs. Relocating franchisees may pay reduced continuing license fees and sales promotion program fees, depending on the circumstances. See Item 6 for more information. The relocation policy is subject to ADQ's prior written consent and the other relocation standards contained in the franchise agreement and any applicable lease (see Item 9). The relocation policy does not apply to non-system food or Captive-venue locations.
Source: Item 12 — UItem 12U***:** U**Territory (FDD pages 47–49)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, a franchisee may be able to relocate their Street location under certain conditions. If relocation is necessary due to circumstances like condemnation or landlord action, and Dq Treat approves, the new location must be within a 500-meter radius of the original authorized location. Additionally, the new location must be acceptable to Dq Treat, suitable for a Dq Treat store, and consistent with their site selection guidelines. Construction at the new site must begin within 180 days, and the store must be open within 120 days after construction starts. The new store must also meet Dq Treat's current standards and specifications.
There is also a relocation policy that allows qualifying franchisees with a Street location to relocate within two miles of the current store location if they sign a new franchise agreement and a relocation addendum. However, the new location must be of the same type, meaning a Street location outside of a mall cannot relocate inside a mall. The timeframes mentioned earlier still apply to this policy.
Franchisees who relocate under this policy do not have to pay an initial franchise fee, but they must meet the current training requirements, including any associated fees, and purchase construction consultation services and prototype building plans if the location is freestanding. Relocating franchisees may also be eligible for reduced continuing license fees and sales promotion program fees, depending on the circumstances. It is important to note that all relocations are subject to Dq Treat's prior written consent and compliance with the franchise agreement and any applicable lease. This relocation policy does not apply to non-system food or Captive-venue locations.
Prospective franchisees should carefully review these relocation policies and discuss any specific concerns or questions with Dq Treat to fully understand their rights and obligations regarding relocation.