Who is responsible for the cost of shipping defective equipment back to PAR for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
PAR will ship replacement Equipment to Participating Location's ship-to address, freight prepaid, with next day delivery within the United States for requests received prior to 4:00 p.m. (Eastern Time), Monday through Friday and 12:00 p.m. (Eastern Time), Saturday.
Replacement Equipment will be shipped by a premium air freight carrier when PAR determines such method of shipment is appropriate.
Participating Location must acknowledge receipt of replacement Equipment by signing the freight carrier air bill or similar shipping/delivery documentation accompanying the replacement Equipment.
- (d) Return of Defective AE Equipment.
PAR will provide Participating Location with a pre-paid shipping label and packaging instructions for the return of the defective AE Equipment to PAR.
Participating Location will return the defective AE Equipment to PAR using the corresponding replacement Equipment packaging (PAR will ship replacement Equipment in reusable packaging).
Participating Location should be prepared to return ship the defective AE Equipment within two (2) business days of Participating Location's receipt of the replacement Equipment; however, the defective AE Equipment must be returned to PAR no later than 14 days of Participating Location's receipt of the replacement Equipment.
If Participating Location fails to return the defective AE Equipment within such 14-day period, PAR will notify Participating Location that it has not received the return of the defective AE Equipment, and if Participating Location does not return such defective AE Equipment within 14 days after such notification, Participating Location will be required to purchase the replacement Equipment and pay a 10% restocking fee; and, if Participating Location fails to pay the invoice for such replacement Equipment, then the Equipment Warranty on the replacement Equipment will be ineffective until Participating Location's account is current.
PAR reserves the right to charge Participating Location PAR's then-current time-and-materials rates for Advance Exchange Services provided to Participating Location when PAR determines that the root cause of the defective AE Equipment was as a result of events or circumstances described in Section 7(b)(ii)) below.
If PAR determines that more than 50% of the AE Equipment returned by Participating Location in any consecutive six (6) month period was not defective, Participating Location will be invoiced diagnostic and handling fees for each subsequent defective AE Equipment returned where no defect is found.
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, PAR provides a pre-paid shipping label for franchisees to return defective equipment to PAR. The franchisee is responsible for using the packaging from the replacement equipment to return the defective equipment.
The franchisee must ship the defective equipment within two business days of receiving the replacement equipment, but no later than 14 days after receipt. If the franchisee fails to return the defective equipment within this 14-day window, PAR will notify the franchisee. If the franchisee still does not return the equipment within 14 days after the notification, Dq Treat will require the franchisee to purchase the replacement equipment and pay a 10% restocking fee. Additionally, the equipment warranty on the replacement equipment will be ineffective until the franchisee's account is current.
However, PAR reserves the right to charge the Dq Treat franchisee its current time-and-materials rates for Advance Exchange Services if the defect was caused by events or circumstances outlined in Section 7(b)(ii). Additionally, if PAR determines that more than 50% of the equipment returned by the franchisee in any consecutive six-month period was not defective, the franchisee will be invoiced for diagnostic and handling fees for each subsequent defective equipment return where no defect is found.