What is the requirement for a Dq Treat franchisee regarding the personal undertaking and guarantee?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
If the franchisee will be a business entity, all of its owners must sign the personal undertaking and guarantee attached to the franchise agreement. You must identify your owners in the Ownership Addendum and notify ADQ in writing of any change in the owners.
Source: Item 15 — UItem 15U***:** U**Obligation to Participate in the Actual Operation of the Franchise Business (FDD page 51)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, if the franchisee is a business entity, all owners of that entity must sign a personal undertaking and guarantee, which is attached to the franchise agreement. The franchisee must identify all owners in an Ownership Addendum and must notify ADQ (American Dairy Queen Corporation) in writing of any changes to the ownership structure.
This requirement means that each individual with an ownership stake in the franchisee business is personally responsible for the obligations and liabilities of the franchise. This is a common practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the owners if the business fails to meet its financial or contractual obligations.
Prospective Dq Treat franchisees should carefully review the personal undertaking and guarantee document to understand the full extent of their personal liability. They should also ensure that they accurately identify all owners in the Ownership Addendum and promptly notify ADQ of any changes in ownership to remain in compliance with the franchise agreement.