Can Dq Treat transfer its interest in the agreement without the licensee's consent?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.6 Transfer by Company. Company can transfer, in whole or in part, its interest in this agreement without Licensee's consent. Following the effective date of any assignment, Licensee will look solely to the transferee or assignee,
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, Dq Treat can transfer its interest in the operating agreement without the franchisee's consent. The FDD states that after the transfer's effective date, the franchisee must look solely to the new transferee or assignee. This means Dq Treat has the right to assign the agreement to another party without needing the franchisee's approval.
This clause is fairly standard in franchising, allowing the franchisor flexibility in its business operations. For a Dq Treat franchisee, this means that the entity they initially contracted with could change. While the terms of the agreement should remain the same, the new entity responsible for upholding the franchisor's obligations would be different.
It is important for a prospective Dq Treat franchisee to understand that Dq Treat can transfer the agreement to another party. While the franchisee's consent is not required, the franchisee should ensure that the new entity is capable of fulfilling the franchisor's obligations under the agreement. This transfer does not relieve the franchisee of their own obligations under the agreement.