What is the role of the Franchise Advisory Council (FAC) for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise advisory council ("FAC") advises ADQ on marketing, advertising and other matters, but solely in an advisory capacity. As of the date of this disclosure document, the FAC is comprised of members that are chosen or elected in the following manner: (1) DMA chairpersons (elected by franchisees) from each of ten U.S. regions elect one DMA chairperson to serve as the region's representative on the FAC; (2) the Canadian Franchise Advisory Council ("CFAC"), elected by Canadian franchisees, selects two representatives from the CFAC to represent the east and west regions of Canada; and (3) the Dairy Queen Territory Operator Organization ("DQTOO") or the DQTOO board, elected by territory operators, chooses two territory operator representatives. ADQ
reserves the right to appoint two "at large" franchisee members to the FAC. Further, ADQ reserves the right to form committees that will work with the FAC at any time on any matter. ADQ has the power to form, change, or dissolve the FAC or any of its committees, and has the right to change how franchisee membership on the FAC or any committee is determined.
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 Franchise Disclosure Document, the Franchise Advisory Council (FAC) serves in an advisory capacity to ADQ (American Dairy Queen Corporation) on matters related to marketing, advertising, and other relevant issues. The FAC does not have decision-making authority but provides guidance and recommendations.
As of the date of the 2025 FDD, the FAC's membership is structured as follows: DMA (Designated Marketing Area) chairpersons, elected by franchisees from ten U.S. regions, elect one DMA chairperson to represent their region on the FAC. The Canadian Franchise Advisory Council (CFAC), elected by Canadian franchisees, selects two representatives from the east and west regions of Canada. The Dairy Queen Territory Operator Organization (DQTOO), or the DQTOO board, elected by territory operators, chooses two territory operator representatives. ADQ also reserves the right to appoint two "at large" franchisee members to the FAC.
Dq Treat retains significant control over the FAC's structure and operations. ADQ has the authority to form committees to work with the FAC on specific matters. Furthermore, ADQ reserves the right to modify or dissolve the FAC or any of its committees and to change the process by which franchisee membership on the FAC or its committees is determined. This indicates that while the FAC provides franchisee input, Dq Treat ultimately controls the council's existence, composition, and influence.