For Dq Treat, when does the term of the Participation Agreement commence and how long does it continue?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4 Term. The "Term" begins when the Participation Agreement is signed by the parties and continues for so long as the Agreement is in effect, provided, however, that to the extent GIFT is required to provide commercially reasonable
support services following a termination of the Agreement, the provisions of this Participation Agreement shall remain in effect, but only to the extent necessary for GIFT to perform such services and for Operated Locations, Participating Franchisee or Sub- Franchisee to fulfill its obligations in connection with such services. Notwithstanding anything herein to the contrary, Participating Franchisee or Sub-Franchisee has the right to terminate this Participation Agreement, without cause and without any penalty fee, upon no less than sixty (60) days' prior written notice to GIFT, with a copy of such notice to Client.
5 Termination for Cause.
- Either party has the right to terminate this Participation Agreement immediately in the event that the other party is guilty of a material breach of this Participation Agreement, and such breach remains uncured thirty (30) days following receipt of notice thereof.
GIFT will provide a copy of such notice of termination to Client.
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 Franchise Disclosure Document, the term of the Participation Agreement begins when the agreement is signed by both parties. The agreement remains in effect as long as the agreement is in effect. However, if GIFT is required to provide commercially reasonable support services following the termination of the agreement, the provisions of the Participation Agreement will remain in effect to the extent necessary for GIFT to perform such services and for the Operated Locations, Participating Franchisee or Sub-Franchisee to fulfill its obligations in connection with such services.
Notably, the franchisee has the right to terminate the Participation Agreement without cause or penalty, provided they give no less than sixty days prior written notice to GIFT, including a copy of such notice to the Client. This provides some flexibility for the franchisee should they wish to discontinue participation, subject to the notice period.
Either party also has the right to terminate the Participation Agreement immediately if the other party materially breaches the agreement, and the breach remains uncured for thirty days following receipt of notice. GIFT will provide a copy of such termination notice to the Client. This clause ensures that both parties are held accountable for fulfilling their obligations under the agreement and provides a mechanism for resolving disputes.