To what is the Dq Treat relocation policy subject?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the relocation policy is subject to ADQ's (American Dairy Queen's) prior written consent. Additionally, the policy is subject to the other relocation standards contained in the franchise agreement and any applicable lease, as detailed in Item 9 of the FDD. This means that a Dq Treat franchisee cannot simply relocate their store without first obtaining approval from ADQ and ensuring that the relocation adheres to the terms outlined in both the franchise agreement and the store's lease.
This requirement of prior written consent and adherence to specific standards protects the Dq Treat brand and ensures consistency across all locations. ADQ likely has criteria related to site selection, market analysis, and brand image that must be met before a relocation is approved. Item 9 of the FDD, referenced in the disclosure, likely contains further details on lease-related requirements that could impact a relocation.
For a prospective Dq Treat franchisee, this means that relocating a store is not a guaranteed right, even if the franchisee meets the basic eligibility criteria. The franchisee must proactively seek ADQ's approval and be prepared to demonstrate that the new location meets all applicable standards. This process could involve additional costs, such as site evaluation fees or legal expenses, and could potentially delay or prevent a desired relocation. Franchisees should carefully review Item 9 of the FDD and discuss the relocation policy in detail with ADQ representatives to fully understand the requirements and potential challenges.