Does Dq Treat require franchisees to purchase or lease real estate from ADQ or its affiliates?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
While you are not required to purchase or lease real estate from ADQ or its affiliates, you must obtain ADQ's consent to the location of your store, and ADQ has the right but not the obligation to approve the lease for the store premises prior to execution. You must construct and equip your store according to the then-current design, specifications and standards and must ensure that your building plans comply with the Americans With Disabilities Act and all other federal, state and local laws.
You must modernize your building, premises, equipment, signage and grounds to conform to ADQ's then-current standards for similarly situated new DQ® restaurants when you renew your franchise, on transfer of the franchise under certain circumstances, and every 10 years or any shorter period required by any applicable lease or sublease for the premises.
Source: Item 8 — UItem 8U***:** U**Restrictions on Sources of Products and Services (FDD pages 29–35)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, franchisees are not required to purchase or lease real estate from ADQ or its affiliates. However, Dq Treat must consent to the location of the store, and ADQ has the right to approve the lease for the store premises before it is executed. This means that while franchisees have the freedom to choose their location, Dq Treat retains some control over the site selection and lease terms.
This arrangement allows franchisees to find locations that suit their business needs while ensuring that the location aligns with Dq Treat's brand standards and operational requirements. The approval process helps maintain consistency across all franchise locations and ensures that the premises are suitable for Dq Treat's business model. Franchisees must construct and equip their stores according to Dq Treat's current design, specifications, and standards, and ensure compliance with the Americans With Disabilities Act and all other applicable laws.
Furthermore, franchisees are obligated to modernize their building, premises, equipment, signage, and grounds to meet Dq Treat's current standards for new restaurants. This modernization is required upon franchise renewal, under certain transfer circumstances, and every 10 years, or more frequently if required by the lease or sublease for the premises. This ensures that all Dq Treat locations remain up-to-date and consistent with the brand's image, which can impact the customer experience and overall brand perception.