What is the role of ADQ in administering national sales promotion activities for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ADQ administers national sales promotion activities (including point of purchase materials) through a dedicated NMF. Sales promotion program fees are used at the national level through the NMF to develop and pay for the production of creative and other materials to support the SMCs, and also to fund national media and various other sales promotion activities, including, at ADQ's discretion, consumer loyalty programs, consumer feedback programs, online or mobile ordering or delivery programs, and similar activities at the national level, as well as other activities within the overall DQ® and Orange Julius® systems. The NMFs are funded principally from an allocation of the sales promotion program fees paid by participating restaurants and stores. The percentage allocated to the NMF may vary between restaurants and stores and between markets. ADQ has the right to establish and periodically change the amount of sales promotion program fees that are allocated to an NMF with or without notice to you.
ADQ's marketing department is responsible for the development of the sales promotion activities for all DQ® brands, including system marketing calendars ("SMCs"). The SMCs, and the creative and sales promotion materials created in support of the SMCs, are designed to increase consumer awareness and drive trial of DQ® products and promotions, build the customer base, increase customer visit frequency, and build the DQ® brand overall. The SMCs consist of promotions and events designed to allow the DQ® system, on a market by market or national basis as determined by ADQ, to convey a uniform marketing message. The SMCs are used as the foundation for media plans in the DQ® system. Other sales promotion activities include creative materials, tie-in promotions, new product introductions, and system promotions. ADQ uses various forms of media to promote the DQ® system, brand and products, which may include broadcast or cable television, radio, newspaper inserts, ads in newspaper/shoppers, magazines, billboards, various in-store materials, exterior merchandising, various local restaurant marketing materials, online communication, social media, electronic or mobile media, and new forms of media depending on the objectives. Because you sell a smaller number of DQ® items from your DQ® Treat store compared to some of the other DQ® concepts, such as a DQ Grill & Chill® restaurant, your sales promotion materials will not include all DQ® materials nor may all DQ® promotional activities apply to your DQ® Treat store.
In addition to its other programs, ADQ has the right to offer a local reimbursement or online credit program to certain franchisees if ADQ determines that the reimbursement is warranted for a particular restaurant or store. The availability of this program for a restaurant or store may be for a variable period of time and a variable amount of money, depending on the individual circumstances. If ADQ establishes such a program for your store, you may request reimbursement (or online credit, depending on the system available) of all eligible types of local media, promotions and promotional items you purchase up to the amount that has been determined by ADQ for your store. Unreimbursed funds at the end of the applicable period will not be carried over for future use by the particular restaurant, but will be used for other sales promotion activities in the DQ® and Orange Julius® systems, as determined by ADQ.
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 the 2025 Dq Treat FDD, ADQ plays a central role in administering national sales promotion activities through a dedicated National Marketing Fund (NMF). ADQ develops and funds the production of creative materials to support system marketing calendars (SMCs). These SMCs are designed to increase consumer awareness, drive trial of Dq Treat products and promotions, build the customer base, increase customer visit frequency, and build the Dq Treat brand overall. ADQ also funds national media and various other sales promotion activities, including consumer loyalty programs, consumer feedback programs, and online or mobile ordering or delivery programs at its discretion. The NMF is funded by sales promotion program fees paid by participating restaurants and stores, with the percentage allocated to the NMF varying between locations and markets. ADQ has the right to change the amount of sales promotion program fees allocated to the NMF without notice.
ADQ's marketing department is responsible for developing sales promotion activities for all Dq Treat brands, including the system marketing calendars (SMCs). These calendars and related materials aim to increase consumer awareness and drive trial of Dq Treat products and promotions. The SMCs consist of promotions and events designed to convey a uniform marketing message on a market-by-market or national basis, as determined by ADQ. ADQ uses various forms of media to promote the Dq Treat system, brand, and products, including television, radio, newspaper inserts, magazines, billboards, in-store materials, online communication, social media, and electronic or mobile media. However, because Dq Treat stores sell fewer items compared to other Dq concepts, their sales promotion materials may not include all Dq materials, and not all promotional activities may apply.
ADQ also has the right to offer a local reimbursement or online credit program to certain franchisees if ADQ determines that the reimbursement is warranted for a particular restaurant or store. If ADQ establishes such a program for a franchisee's store, the franchisee may request reimbursement (or online credit) of all eligible types of local media, promotions, and promotional items purchased up to the amount determined by ADQ for their store. Any unreimbursed funds at the end of the applicable period will not be carried over for future use by the particular restaurant but will be used for other sales promotion activities in the Dq Treat and Orange Julius systems, as determined by ADQ.
Prospective franchisees should note that ADQ has significant control over the sales promotion program, including how fees are spent and allocated. While ADQ administers national sales promotion activities, it 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 a franchisee is located. 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. This means that franchisees have limited control over how their sales promotion fees are used and must rely on ADQ's discretion in allocating these funds.