What is Dq Treat required to do if it seeks indemnification under the agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
structural system for the selected site. The Plans specify wood
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construction, however, an alternative system may be utilized that does not alter the building image and brand identity.
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- OWNERSHIP AND MODIFICATIONS TO THE PLANS--If the Plans are modified by anyone other than ADQ, Licensee shall submit a copy of the modified plans to ADQ for review and written approval. Construction of a modified building shall not commence without plan approval from ADQ. ADQ must approve in writing any proposed alteration to previously approved building plans, including those ADQ or designee prepares. Further, if your local architect makes revisions to ADQ Plans, these revisions shall become the property of ADQ, and ADQ has the right to use those plans in any manner in the future.
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- EXPIRATION OF PLANS-- Plans provided by ADQ are valid for six months from the date of issuance. After the six-month time period, Plans will no longer be valid unless Licensee has obtained a written extension from ADQ.
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- ACKNOWLEDGMENT OF LICENSEE'S CONSTRUCTION RESPONSIBILITIES--See a
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 the 2025 Dq Treat FDD, franchisees must protect, indemnify, and defend American Dairy Queen Corporation (ADQ) and its affiliates. This means the franchisee is responsible for covering any claims, demands, damages, and liabilities that arise directly or indirectly from the franchise operation. This obligation exists regardless of whether ADQ's actions or negligence contributed to the issue.
Specifically, the franchisee's duty to indemnify Dq Treat extends to issues connected with the franchise's business plans, the franchised location itself, and any aspect of the franchise agreement. This broad indemnification clause means a Dq Treat franchisee could be held responsible for a wide range of potential problems, even if ADQ is partially at fault.
In addition to the indemnification clause, Dq Treat franchisees must maintain liability insurance. The insurance policy must cover ADQ and its affiliates, protecting them from liability for damages and injuries. The minimum coverage must be $2,000,000 per occurrence, but Dq Treat can increase this amount in the future for similarly situated franchisees. The franchisee must provide Dq Treat with proof of insurance, and Dq Treat must receive 30 days' notice before any changes or cancellation of the policy.