What is the total initial franchise fee for a single Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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Initial Franchise Fee
You must pay ADQ a $25,000 initial franchise fee for a single franchise, the first $10,000 of which is a non-refundable deposit due when you submit a franchise application, which is included in this disclosure document as Exhibit D. The balance of the initial franchise fee is due when ADQ approves the franchise application and issues a written consent letter. You do not pay an initial franchise fee if you are a conversion franchisee, an existing franchisee relocating a restaurant under ADQ's relocation policy, or an existing Orange Julius® franchisee converting an Orange Julius® location to a DQ® Treat location.
The initial $10,000 deposit is not refundable and the balance of the initial franchise fee is refundable only in the following instances: (1) if you withdraw your application after ADQ has approved it but before you commence construction; (2) if your required training attendees fail to successfully complete the training program and your approval is cancelled (see Item 11 for information on required training attendees); (3) if your site is not designated and ADQ does not consent to the site within 90 days after the date ADQ approves your application; or (4) if you have not commenced construction within 180 days from the franchise agreement effective date. In these instances, ADQ has the right to cancel any agreements that have been signed with ADQ without opportunity to cure.
ADQ may charge a reduced, non-refundable initial franchise fee in certain situations, including: (1) when a franchisee is opening a franchise in a previously closed location; (2) certain Captive-venue locations, including those in airports, colleges and universities, and with certain national food service operators specializing in providing food service in these types of locations; and (3) for operators with multiple DQ® locations who have developed one or more new franchises with ADQ in the past five years, who have an ADQ certified multi-unit operator training program, and have a ful
Source: Item 5 — Initial Fees (FDD pages 19–20)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, the initial franchise fee for a single franchise is $25,000. The initial payment is split into two installments. The first $10,000 is a non-refundable deposit that must be paid when the franchise application is submitted. The remaining balance of $15,000 is due when Dq Treat approves the franchise application and issues a written consent letter.
However, the FDD notes that franchisees converting an existing Dairy Queen soft-serve-only store or an NSF store to a Dq Treat store, existing franchisees relocating a restaurant under Dq Treat's relocation policy, or existing Orange Julius franchisees converting an Orange Julius location to a Dq Treat location do not have to pay the initial franchise fee. Dq Treat may also charge a reduced, non-refundable initial franchise fee in certain situations, such as when a franchisee is opening a franchise in a previously closed location, certain Captive-venue locations, and for operators with multiple DQ locations who have developed one or more new franchises with ADQ in the past five years, who have an ADQ certified multi-unit operator training program, and have a full time construction supervisor on staff.
The initial $10,000 deposit and the balance of the initial franchise fee are refundable only in specific instances: if the applicant withdraws their application after approval but before construction, if required training attendees fail the training program, if a site is not designated within 90 days of application approval, or if construction hasn't started within 180 days of the franchise agreement's effective date. In these cases, Dq Treat can cancel any signed agreements without allowing an opportunity to correct the issue.
Prospective franchisees should carefully review Item 5 of the FDD to understand the specific conditions under which the initial franchise fee may be reduced or waived, as well as the circumstances under which a refund may be possible. Understanding these conditions is crucial for making informed financial decisions when investing in a Dq Treat franchise.