When does the title to Acumera equipment pass to the customer for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Title to any Equipment passes to Customer upon shipment (FOB Origin).
If any Equipment is not received by the Participating Location or is damaged in the shipping process, Acumera will replace that Equipment with no additional charge to the Participating Location.
If the Equipment fails for reasons other than misuse, abuse, or the fault or negligence of Participating Location or a third party, or an Act of God, it will be replaced by Acumera without additional payment from the Customer.
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 FDD, the title to any Acumera equipment passes to the customer, referred to as the Participating Location, upon shipment, specifically FOB Origin. This means that once the equipment leaves Acumera's point of origin for shipping, the ownership transfers to the Dq Treat franchisee.
However, if the equipment is not received by the Participating Location or is damaged during shipping, Acumera will replace it at no additional cost to the franchisee. Additionally, should the equipment fail due to reasons other than misuse, abuse, negligence by the franchisee or a third party, or an Act of God, Acumera will replace it without additional payment from the customer.
This arrangement provides some assurance to the Dq Treat franchisee, as Acumera bears the responsibility for replacing equipment damaged during shipping or due to manufacturing defects. However, the franchisee assumes responsibility once the equipment is shipped in good condition, highlighting the importance of proper handling and maintenance to avoid incurring replacement costs due to misuse or negligence.