factual

Does Dq Treat have the right to use sales promotion or advertising materials developed by a licensee?

Dq_Treat Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (3) Company owns and can use and permit others to use any sales promotion or other advertising materials, ideas, concepts or programs developed by Licensee.

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 Dq Treat's 2025 Franchise Disclosure Document, Dq Treat owns and can use any sales promotion or advertising materials, ideas, concepts, or programs developed by a licensee. Dq Treat also has the right to permit others to use these materials.

This means that if a Dq Treat franchisee develops a successful marketing campaign or advertising concept, Dq Treat has the right to use that material across the entire franchise system without providing any compensation to the franchisee who developed it. This clause covers any advertising or promotion ideas related to the restaurant.

Before using any advertising materials, a Dq Treat licensee must submit them to Dq Treat for written approval. Dq Treat will not unreasonably withhold approval as long as the materials are factually accurate, current, in good condition and taste, of similar quality to Dq Treat's materials, and accurately depict the products and trademarks. Franchisees must disclose any ideas, concepts, products, recipes, processes, methods, techniques, improvements, or additions relating to the development or operation of a DQ restaurant to Dq Treat.

This is a fairly standard clause in franchise agreements, as it allows the franchisor to leverage successful ideas from individual franchisees for the benefit of the entire system. However, it's important for franchisees to be aware that they may not receive any direct benefit or compensation for their creative contributions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.