Under what circumstances can the agreement be assigned or transferred to a third party by a Dq Treat location?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Participating Location or PAR may assign or transfer the Sales Order/Purchase Order and/or Terms or any interest therein to a third party, without prior written consent of the other party, which shall not be unreasonably withheld; provided, however, the Sales Order/Purchase Order and/or Terms may be assigned as part of a merger, or sale of all or substantially all of the business or assets, of a party.
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, a Participating Location, referring to a Dairy Queen or Orange Julius franchise location purchasing equipment and software through the PAR Solution, needs prior written consent from PAR (ParTech, Inc.) to assign or transfer the Sales Order/Purchase Order, Terms, or any related interest to a third party. However, the document states that this consent will not be unreasonably withheld.
An exception exists: the Sales Order/Purchase Order and/or Terms can be assigned as part of a merger or the sale of all or substantially all of the business or assets of either party (Participating Location or PAR). This exception provides a mechanism for transfer in the event of significant business restructuring or acquisition.
This condition affects franchisees by requiring them to seek approval for transferring agreements related to the PAR Solution, but it also protects the franchisee by stating that consent will not be unreasonably withheld. Franchisees should be aware of this requirement and factor it into any potential sale or transfer of their business, ensuring they obtain the necessary written consent or meet the criteria for the exception related to mergers or sale of assets.