Under what circumstances is a Dq Treat Participating Location required to indemnify PAR?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Participating Location shall cooperate with PAR in PAR's enforcement of its rights and remedies hereunder, including granting PAR access to Participating Location's facilities for the purpose of retaking possession of the Equipment, and shall indemnify PAR for all costs and expenses incurred by PAR in connection with the repossession, transport and/or disposal of the Equipment that is damaged or otherwise is unsalable as a direct or indirect result of Participating Location's default hereunder.
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 Participating Location is required to indemnify PAR (presumably referring to costs and expenses) when the Participating Location does not cooperate with PAR in PAR's enforcement of its rights and remedies. This includes granting PAR access to the Participating Location's facilities to repossess equipment.
Specifically, the Participating Location must indemnify PAR for all costs and expenses incurred by PAR in connection with the repossession, transport, and/or disposal of the Equipment if the equipment is damaged or otherwise unsalable. This condition applies if the damage or unsalability is a direct or indirect result of the Participating Location's default under the agreement.
In simpler terms, if a Dq Treat franchisee fails to meet their obligations and PAR has to take back equipment, the franchisee is responsible for covering PAR's expenses related to retrieving and dealing with the equipment, especially if the franchisee's actions have caused the equipment to be damaged or unusable.