Are there State Specific Addenda included in the Dq Treat Operating Agreement sample?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- If you are a current franchisee of an existing DQ® Treat store and ADQ is permitting you to relocate your store under the relocation policy, you must sign the franchise agreement and the relocation addendum included in Exhibit B. The relocation policy is not applicable to Captive-venue locations.
If you are a current franchisee of an existing DQ® restaurant that has a contractual right to renew the existing franchise at the end of its initial term, and you meet ADQ's qualifying criteria for renewal, you will be required to sign the franchise agreement and the renewal addendum included in Exhibit B.
If you are purchasing or otherwise acquiring an existing DQ® Treat store, and you meet ADQ's qualifying criteria and requirements to obtain ADQ's consent for the transfer, you will be required to sign the franchise agreement included in Exhibit B.
Conversion Program
If you operate an existing Dairy Queen® soft-serve-only or limited non-system food ("NSF") store, and meet all of ADQ's qualifying criteria, ADQ may allow you to convert your store to a DQ® Treat store by signing the franchise agreement and the applicable conversion addendum included in Exhibit C. The conversion addenda allow you to, among other things, carry over from your old agreement to the new agreement the protected territory and the continuing license fee for products made with soft-serve as an ingredient.
Source: Item 22 — UItem 22U***:** U**Contracts (FDD page 67)
What This Means (2025 FDD)
The 2025 Dq Treat FDD indicates that addenda to the franchise agreement are included as exhibits, but does not specify whether these addenda include state-specific provisions. However, the document mentions a relocation addendum, a renewal addendum, and conversion addenda, suggesting that the franchise agreement can be modified based on specific circumstances.
Item 17 references that the Licensee may be required to release the company from all claims arising out of or relating to the Operating Agreement. However, the Licensee Parties do not release the Company Parties from any obligations arising under this Release and the Licensee Parties and the Company Parties acknowledge that the release set forth in this Section does not release Company Parties from any liability under the Maryland Franchise Registration and Disclosure Law.
To determine if there are state-specific addenda, a prospective Dq Treat franchisee should carefully review Exhibit B (the Operating Agreement) and related exhibits, and ask the franchisor directly whether any state-specific addenda exist and under what conditions they would apply. This is a crucial step in understanding the full scope of the franchise agreement and any potential legal variations based on the franchisee's location.