Under what circumstances will Dq Treat refund the transfer fee to a Dq Treat licensee?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Refund. If Company exercises its right of first refusal or does not consent to a proposed transfer, Company will return the transfer fee to Licensee, minus any actual expenditures or disbursements made by Company in direct connection with evaluating or processing the proposed transfer, together with an itemized statement of these costs.
The transfer fee is not refundable in whole or in part except as expressly stated in this agreement.
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 refund of the transfer fee is possible under specific conditions. If Dq Treat exercises its right of first refusal, meaning they decide to purchase the franchise themselves instead of allowing the proposed transfer, or if Dq Treat does not consent to the proposed transfer to a third party, the company will return the transfer fee to the licensee.
However, this refund is not absolute. Dq Treat will deduct any actual expenditures or disbursements they made while evaluating or processing the proposed transfer. The licensee will receive an itemized statement detailing these costs. This means that even if the transfer doesn't go through due to Dq Treat's decision, the franchisee may not receive the entire transfer fee back if Dq Treat incurred expenses during the evaluation process.
It's important to note that the transfer fee is generally non-refundable, except in the specific situations outlined in the agreement. This policy is fairly standard in the franchise industry, as the franchisor typically incurs costs when reviewing a potential transfer. A prospective Dq Treat franchisee should carefully consider these conditions and understand that a transfer fee refund is not guaranteed, even if the transfer is ultimately denied.