Does Dq Treat require franchisees to modernize their locations upon renewal?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
within 90 days if a Captive-venue Location, or 120 days if a Street Location.
- (E) The new Restaurant must be constructed and equipped in accordance with Company's then current standards and specifications.
- 5.5 Modernization or Replacement. Licensee must modernize, refurbish or replace the building, premises, equipment, signage and grounds as is necessary to reasonably conform them to Company's then current standards for similarly situated new restaurants of the type developed under this agreement, upon renewal of this agreement, upon transfer of this agreement under the circumstances described in section 11, and every 10 years or any shorter period required by the lease for the premises. The requirements of this section 5.5 are reasonable and necessary to ensure continued public acceptance and patronage of DQ® restaurants and to avoid deterioration or obsolescence in connection with the operation of the business.
5.6 Lease.
- (A) To the extent that Company assists Licensee with any lease negotiations, Licensee acknowledges that Company or an affiliate:
- (1) has not made any representations or warranties to Licensee with respect to whether Company's or its affiliate's negotiation with the landlord will be successful, whether the lease terms or site are adequate or appropriate, nor that the Authorized Location will be ready for occupancy or opening by any specified date; and
- (2) neither Company nor an affiliate are responsible or liable to Licensee for damages arising out of any failure by Company or its affiliate to obtain the landlord's agreement to enter into a lease, the landlord's failure to enter into a lease with Licensee, or for the failure of the Authorized Location to be ready for occupancy or opening by any specified date.
- (B) If Licensee has signed a sublease for the Restaurant premises and Company or its affiliate and the landlord are unable to agree to a prime lease, Company may declare this agreement null and void, and all deposits, including the initial franchise fee, w
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, franchisees must modernize their locations upon renewal of the franchise agreement. Section 5.5 of the DQ® Treat Operating Agreement states that the franchisee must modernize, refurbish, or replace the building, premises, equipment, signage, and grounds to conform to Dq Treat's current standards for new restaurants. This requirement ensures that all Dq Treat locations maintain a consistent brand image and appeal to customers.
This modernization requirement also applies upon the transfer of the agreement under certain circumstances and every 10 years, or any shorter period required by the lease for the premises. The FDD states that these requirements are reasonable and necessary to ensure continued public acceptance and patronage of Dq Treat restaurants and to avoid deterioration or obsolescence in connection with the operation of the business.
As part of the renewal process, Section 4.3(C) specifies that the franchisee must comply with the modernization and replacement provisions outlined in Section 5.5 to be eligible for renewal. Meeting these modernization standards is a condition for renewing the franchise license, in addition to other requirements such as providing written notice of intent to renew, signing the current operating agreement, being in good standing, and paying a renewal fee. The renewal fee is calculated as $1,000 times the number of years in the renewal term, not exceeding $10,000.