What is the required action that a Dq Treat Participating Franchisee or Sub-Franchisee must take before bringing any claim against GIFT under the Participation Agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to bringing any claim against GIFT under this Participation Agreement, 12 Participating Franchisee or Sub-Franchisee shall provide Client with written notice detailing the claim ("Notice of Claim"), and Client shall have the right to pursue such claim on Operated Location's, Participating Franchisee's or Sub-Franchisee's behalf by providing Operated Location, Participating Franchisee or Sub-Franchisee with written notice of the same within ten (10) business days after receiving the Notice of Claim.
If Client elects to pursue such claim on Operated Location's, Participating Franchisee's or Sub-Franchisee's behalf, Operated Location, Participating Franchisee or Sub-Franchisee may participate in the claim with Client at Operated Location's, Participating Franchisee's or Sub-Franchisee's election.
Any resolution of a claim brought by Client on Operated Location's, Participating Franchisee's or Sub-Franchisee's behalf shall be binding on Operated Location, Participating Franchisee or Sub-Franchisee.
If Client elects not to pursue such claim on Operated Location's, Participating Franchisee's or Sub-Franchisee's behalf, Operated Location, Participating Franchisee or Sub-Franchisee may pursue such claim on its own behalf.
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, before a Participating Franchisee or Sub-Franchisee can bring a claim against GIFT (First Data Resources, LLC) under the Participation Agreement, they must first provide Client (DQ GC Inc.) with written notice detailing the claim. This written notice is referred to as the "Notice of Claim."
After receiving the Notice of Claim from the Dq Treat franchisee, Client has the right to pursue the claim on the franchisee's behalf. Client must provide written notice to the franchisee within ten (10) business days of receiving the franchisee's Notice of Claim if it elects to pursue the claim.
If Client chooses to pursue the claim, the Dq Treat franchisee can participate in the claim alongside Client, should they elect to do so. Any resolution of a claim brought by Client on the franchisee's behalf will be binding on the franchisee. If the Client decides not to pursue the claim, the franchisee is then permitted to pursue the claim on their own behalf.