Who is responsible for costs associated with opening delays for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee may not open or commence operation of the Restaurant until Company notifies Licensee that all pre-opening requirements have been met. Company is not liable for any damages arising out of Licensee's failure to open the Restaurant by a particular date.
You are solely responsible for identifying and gaining commitment from a lender that enables you to manage your project within the opening timeline requirements as stated in the consent letter if consent is granted (i.e. SBA preferred and express lenders and providers with the ability to expedite lending). Company has no obligation to assist you with financing and will not adjust timelines based on your inability to timely secure appropriate financing.
Prior to consent, you will be required to secure feasibility information to assess necessary design and governmental approval requirements. The reliability and accuracy of the information you provide us could directly impact your project's required opening timeline. Therefore, it is essential that you provide us with reliable and accurate information on feasibility prior to consent. Company has no obligation to adjust timelines based upon your inability to timely secure any necessary design or governmental approvals.
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, the franchisee bears the responsibility for costs incurred due to opening delays. Dq Treat is not liable for any damages if the franchisee fails to open the restaurant by a specific date.
Specifically, the franchisee is responsible for securing financing that aligns with the opening timeline requirements. Dq Treat has no obligation to assist with financing or adjust timelines based on the franchisee's inability to obtain timely financing.
Additionally, franchisees must secure feasibility information and necessary design and governmental approvals prior to consent. Delays caused by the franchisee's inability to secure these approvals do not obligate Dq Treat to adjust the timelines. This means that any costs or losses resulting from delays in securing financing, feasibility information, design approvals, or governmental approvals fall on the franchisee.
In summary, Dq Treat emphasizes the franchisee's responsibility in managing the project timeline and securing necessary approvals and financing. Franchisees should be prepared to bear the financial burden of any delays arising from these areas.