How is the renewal fee calculated for a Dq Treat franchise agreement, and what is the maximum renewal fee?
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 example, if a Dq Treat franchisee renews their agreement for a term of 7½ years, they will be required to pay a renewal fee of $8,000. This is because any partial year of the renewal term is counted as a full year for the purpose of calculating the renewal fee. Therefore, the 7½ year renewal term is rounded up to 8 years, and then multiplied by $1,000.
This fee structure means that franchisees considering renewal should factor in this cost, especially when negotiating the length of their renewal term. While a longer term provides stability, it also increases the renewal fee, up to the $10,000 maximum. Franchisees should carefully weigh the benefits of a longer renewal term against the associated costs.