How is the renewal fee calculated for a Dq Treat franchise agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount(1) P | Due Date(5) P | Remarks |
|---|---|---|---|
| Renewal Fee (for franchise agreement) | $1,000 times number of years under renewal term (but not to exceed $10,000) | At time of renewal | Any partial year of the renewal term will count as a full year for purposes of calculating the renewal fee. For example, if at the end of the initial term of the franchise agreement, you enter into a renewal franchise agreement with a term of 7½ years, you will be required to pay a renewal fee of $8,000. |
Source: Item 6 — Other Fees (FDD pages 20–24)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the renewal fee for a franchise agreement is calculated by multiplying $1,000 by the number of years in the renewal term. However, the renewal fee will not exceed $10,000. This fee is due at the time of renewal.
For a prospective Dq Treat franchisee, this means that if you renew your franchise agreement for, say, a 5-year term, you would pay a renewal fee of $5,000. If you renew for 12 years, you would only pay $10,000 because that is the maximum renewal fee.
The FDD specifies that any partial year of the renewal term will count as a full year when calculating the renewal fee. For example, if you renew for a term of 7 and a half years, you will be required to pay a renewal fee of $8,000, as the partial year is rounded up to a full year for the purpose of calculating the fee.