Who has the right to determine how sales promotion program fees are spent for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ADQ establishes and conducts sales promotion activities generally for the promotion of the DQ® system, brand and products. It also establishes and conducts sales promotion activities primarily for the promotion of the Orange Julius® system, brand and products. ADQ establishes sales promotion activities for the promotion of DQ® Treat stores, and for the promotion of Orange Julius® products, all of which may be entirely different from the activities relating to other DQ® restaurants and stores. ADQ does not have any fiduciary obligations to franchisees with respect to the funds, nor any obligation to spend any amount on sales promotion in the area or territory where you are located, for a particular component or type of DQ® business or for any individual restaurant or store. ADQ has the sole right to determine how the sales promotion program fees will be spent, and the sales promotion program fees are not held by ADQ in trust.
Source: Item 11 — UItem 11U***:** U**Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 37–47)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, ADQ (American Dairy Queen Corporation) has the sole right to determine how sales promotion program fees are spent. These fees are not held in trust by ADQ.
The sales promotion activities are funded by fees paid by Dq Treat franchisees. These fees can be up to 6% of Gross Sales on Orange Julius branded products and 5% - 6% of Gross Sales on all other products. ADQ can change how these fees are allocated and spent without notice to franchisees. The fees may be used for national marketing, regional activities, pooled accounts, or individual store-level activities.
ADQ may spend these fees by the type of Dq Treat restaurant, local market, or region. They can also develop specialized marketing pools or programs. A portion of the fees can be set aside for individual stores to spend locally through a reimbursement program or online credit system, as determined by ADQ.
Dq Treat franchisees are required to use only the sales promotion materials provided or approved by ADQ. This includes a wide range of items from menu boards to online advertising. While franchisees can propose their own materials, ADQ retains ownership and the right to use any advertising ideas or programs developed by franchisees.