During the Transition Assistance Period, will Punchh provide services to Dq Treat at comparable prices?

According to the 2025 Dq Treat FDD, Punchh will provide services during the Transition Assistance Period at prices that are no worse for Dq Treat and its Participating Locations than the prices for comparable services before the termination. If comparable services were not performed before the termination or expiration, the prices will be no worse than the fair market value for such services. The Transition Assistance Period is defined as the 12-month period following the expiration or termination of the agreement, which allows for an orderly transition of services to Dq Treat or another supplier.

This arrangement ensures that Dq Treat franchisees will not face unexpectedly high costs for essential services during the transition period. It provides a level of price protection, either by maintaining existing rates or ensuring fair market value, which can be crucial for budgeting and financial planning during a change in service providers.

However, Dq Treat franchisees should be aware that additional professional services requested during the Transition Assistance Period may incur costs that need to be mutually agreed upon in a separate Statement of Work (SOW). It is important for franchisees to carefully review and negotiate the terms of any SOW to manage expenses effectively. Franchisees should also ensure they understand what services are included in the original agreement versus what would be considered additional professional services.

Overall, this policy offers Dq Treat franchisees a degree of stability and predictability in service costs during a transition, which is a beneficial aspect of the agreement. Franchisees should proactively engage in the development of the transition assistance plan to ensure their needs are met and to avoid potential cost escalations.