What should I do regarding financial or contractual commitments before receiving written notification of Dq Treat application approval?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
IMPORTANT:
You are not awarded a franchise and have no license rights unless and until you are in receipt of an Operating Agreement signed by a Vice President of Company. This Application or any other document or verbal advice is not to be construed as, and is not, an Operating Agreement or the grant of a franchise or license rights. Do not make any financial or contractual commitments or incur any expenses relative to this Application until you have received written notification that your Application has been approved and you have received Company's consent. If circumstances warrant, any options or lease proposals should be drafted contingent on Company's approval and consent. Any expenses you incur prior to execution of an Operating Agreement are done at your own risk.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, it is crucial to avoid making any financial or contractual commitments or incurring expenses related to the franchise application until you receive written notification of application approval and consent from the company. This is because the application itself, or any other document or verbal advice, should not be interpreted as an Operating Agreement or a grant of franchise or license rights.
Before receiving official approval, any options or lease proposals should be drafted to be contingent on Dq Treat's approval and consent. Any expenses incurred before the execution of an Operating Agreement are undertaken at your own risk. This means that if you proceed with financial or contractual obligations before receiving the green light from Dq Treat, you could potentially lose money if your application is ultimately denied.
This precaution is standard practice in franchising, as it protects both the franchisor and the prospective franchisee. It ensures that neither party is bound by obligations before the franchisor has fully evaluated the applicant and the applicant has fully committed to the franchise agreement. Therefore, patience and adherence to Dq Treat's outlined procedure are essential to mitigate potential financial risks during the application process.