What was the total amount of accrued remodel incentives for Dq Treat in 2024?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Deferred compensation |
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 Dq Treat's 2025 Franchise Disclosure Document, the total amount of accrued remodel incentives for the company in 2024 was $173. In 2023, the accrued remodel incentives totaled $268.
This figure represents the accrued remodel incentives, which are part of the company's incentive program for franchisees who invest in their stores. These incentives are typically offered as a percentage of the capital costs associated with improving or building a restaurant, or a specified dollar limit, whichever is less.
These incentives are generally amortized over a period ranging from 3 to 7 years, depending on the scope of the project, reflecting the expected increased economic benefit resulting from the investment. If a Dq Treat location that received an incentive closes, the remaining unamortized portion of the incentive is expensed in the year of closure. This provides insight into how Dq Treat supports and accounts for franchisee investments in remodeling and improvements.