Is a Renewal Addendum included as part of the Operating Agreement sample for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a current franchisee of an existing DQ® restaurant that has a contractual right to renew the existing franchise at the end of its initial term, and you meet ADQ's qualifying criteria for renewal, you will be required to sign the franchise agreement and the renewal addendum included in Exhibit B.
| Authorized Location: | ||
|---|---|---|
| RENEWAL ADDENDUM TO DQ® TREAT OPERATING AGREEMENT is Addendum to DQ® treat operating agreement ("Agreement") is between American arry Queen Corporation ("Company") and ("Licensee"). Background • Company and Licensee signed a franchise agreement dated that expires on("Expired Agreement"). • Licensee wants to renew the franchise for the Authorized Location under the Agreement, except that Company and Licensee want to modify the Agreement. | ||
| Th | erefore, the parties agree as follows. | |
| 1. | Modernization Date. Licensee must complete the modernization required under the Expired Agreement by the earlier of or any transfer under the Agreement. This paragraph 1 does not change the modernization requirements under the Agreement. | |
| 2. | Training. Licensee must be in compliance with the Expired Agreement's training requirements, and is not required to comply with any further training under section $7.1$ upon signing the Agreement. Sections $7.2-7.8$ are not affected by this addendum. | |
| 3. | Term. Section 4.1 of the Agreement is modified to provide as follows: The term of this Agreement starts on the Effective Date and, unless earlier terminated under section 13, runs for the remaining term of Licensee's lease, as designated on the cover page of the Agreement. | |
| 4. | [If Licensee has an unapproved EPOS system, add: POS. Licensee must replace the existing unapproved EPOS system with the ADQ-approved Integrated Technology Platform/Par Brink EPOS system ("ITP System") by [insert required installation date.] | |
| 5. | Initial Franchise Fee. Section 9.1 of the Agreement is deleted. Instead, Licensee must pay the renewal fee specified in the Expired Agreement in the amount of | |
Source: Item 22 — UItem 22U***:** U**Contracts (FDD page 67)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, a Renewal Addendum is included as part of the Operating Agreement sample. Specifically, if a current franchisee of an existing DQ® restaurant has a contractual right to renew their existing franchise at the end of its initial term, and they meet Dq Treat's qualifying criteria for renewal, they will be required to sign the franchise agreement and the renewal addendum included in Exhibit B. This indicates that the Renewal Addendum is a standard part of the renewal process for eligible franchisees.
Furthermore, the FDD includes a sample "RENEWAL ADDENDUM TO DQ® TREAT OPERATING AGREEMENT". This addendum is described as being between American Dairy Queen Corporation and the Licensee. The purpose of the addendum is to renew the franchise for the Authorized Location under the Agreement, while also allowing for modifications to the original agreement.
The Renewal Addendum outlines several key modifications and requirements for renewal. These include the modernization date, training compliance, term adjustments, potential EPOS system upgrades, and the initial franchise fee. For instance, Section 4.1 of the Agreement is modified to specify that the term of the renewed agreement starts on the Effective Date and runs for the remaining term of the Licensee's lease. Additionally, Section 9.1 regarding the initial franchise fee is deleted, and the Licensee must instead pay the renewal fee specified in the Expired Agreement. These modifications ensure that the renewed agreement reflects current standards and operational requirements.
Overall, the inclusion of a Renewal Addendum in the Operating Agreement sample provides clarity and structure to the renewal process for Dq Treat franchisees. It allows for specific terms of the original agreement to be updated and adapted to the current business environment, ensuring that both the franchisee and franchisor are aligned on expectations and obligations for the renewed term.