When is the renewal fee due for a Dq Treat franchise?
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 due 'at time of renewal'. The fee is calculated as $1,000 times the number of years under the renewal term, with a maximum fee of $10,000.
For a prospective Dq Treat franchisee, this means that when you decide to renew your franchise agreement, you will need to pay a renewal fee. The exact amount will depend on the length of the renewal term you agree to. For example, if you renew for 5 years, the fee would be $5,000 (5 years x $1,000/year). If you renew for 10 years or more, the fee is capped at $10,000.
It's important to note that any partial year of the renewal term counts as a full year when calculating the fee. So, if you renew for 7 and a half years, you'll be charged for 8 years, resulting in an $8,000 renewal fee. This could influence your decision on the length of the renewal term to optimize the cost.