Under what circumstances must a Dq Treat Licensee modernize, refurbish, or replace the building, premises, equipment, signage, and grounds?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee must modernize, refurbish or replace the building, premises, equipment, signage and grounds as is necessary to reasonably conform them to Company's then current standards for similarly situated new restaurants of the type developed under this agreement, upon renewal of this agreement, upon transfer of this agreement under the circumstances described in section 11, and every 10 years or any shorter period required by the lease for the premises. The requirements of this section 5.5 are reasonable and necessary to ensure continued public acceptance and patronage of DQ® restaurants and to avoid deterioration or obsolescence in connection with the operation of the business.
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, a licensee must modernize, refurbish, or replace the building, premises, equipment, signage, and grounds under specific circumstances to align with the company's current standards for similar new restaurants. This requirement is triggered upon renewal of the franchise agreement, upon transfer of the agreement under the conditions described in section 11, and every 10 years, or any shorter period required by the lease for the premises.
This modernization or replacement is deemed necessary to ensure continued public acceptance and patronage of Dq Treat restaurants and to prevent deterioration or obsolescence in the business's operation. This implies that Dq Treat wants to maintain a consistent and up-to-date brand image across all its locations.
For a prospective franchisee, this means that they should anticipate and budget for these periodic modernization or replacement costs. The frequency, either every 10 years or as dictated by the lease, provides a timeline for these expenses. Furthermore, the obligation upon renewal or transfer highlights the importance of understanding the terms of the franchise agreement and any associated lease agreements.
It is important for potential franchisees to fully understand the scope and financial implications of these modernization requirements. They should discuss with Dq Treat the typical costs involved in such upgrades and how the company's standards might evolve over time, as these factors can significantly impact the profitability and long-term viability of the franchise.