Under what circumstances will PAR charge Dq Treat Participating Location its then-current time-and-materials rates for Advance Exchange Services?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
PAR reserves the right to charge Participating Location PAR's then-current time-and-materials rates for Advance Exchange Services provided to Participating Location when PAR determines that the root cause of the defective AE Equipment was as a result of events or circumstances described in Section 7(b)(ii)) below.
If PAR determines that more than 50% of the AE Equipment returned by Participating Location in any consecutive six (6) month period was not defective, Participating Location will be invoiced diagnostic and handling fees for each subsequent defective AE Equipment returned where no defect is found.
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 FDD, PAR has the right to charge a participating location its current time-and-materials rates for Advance Exchange Services if PAR determines that the root cause of the defective AE Equipment was a result of events or circumstances described in Section 7(b)(ii). This means that if the equipment failure is due to something outside of normal wear and tear or a manufacturing defect, Dq Treat franchisees could face additional charges for the exchange service.
Additionally, if PAR determines that more than 50% of the AE Equipment returned by a Dq Treat Participating Location in any consecutive six-month period was not actually defective, the location will be invoiced diagnostic and handling fees for each subsequent defective AE Equipment returned where no defect is found. This policy is designed to prevent abuse of the Advance Exchange Services and ensure that franchisees are only returning equipment that is genuinely faulty.
This policy has important implications for Dq Treat franchisees. It highlights the importance of properly maintaining equipment and accurately diagnosing issues before requesting an exchange. Franchisees should familiarize themselves with Section 7(b)(ii) of the FDD to understand what events or circumstances could lead to time-and-materials charges. Furthermore, franchisees should carefully track their equipment returns to avoid exceeding the 50% threshold for non-defective returns, which could result in diagnostic and handling fees.