Under what circumstances related to a breach of contract will the Acumera agreement terminate immediately for Dq Treat, with no further fees due?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.1. Master Termination. If Dairy Queen terminates the Master Agreement for an uncured material Breach of Contract, this Agreement will terminate immediately and no further fees will be due for Products or Services under this Agreement. Acumera may, at Acumera's option and expense, require Participating Location to return Products supplied under this Agreement. Termination shall not relieve Participating Location of the obligation to pay any Fees accrued or payable to Acumera prior to the effective date of termination. Should Participating Location elect to continue to use Acumera's Services past the date of termination of the Master Agreement, the portions of this Agreement which do not concern duties of Dairy Queen will remain in full force and effect, and Participating Location is responsible for all fees incurred as long as Services are being used. In no case will this Agreement extend beyond the Initial Term, if the Master Agreement has been terminated prior to the end of the Initial Term, or beyond the end of the current Renewal Term, if the Master Agreement has been terminated after the end of the Initial Term.
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, the Acumera agreement can terminate immediately with no further fees due if Dairy Queen terminates the Master Agreement due to Acumera's uncured material breach of contract. In this case, the agreement between the Dq Treat franchisee and Acumera will end immediately.
This provision protects the Dq Treat franchisee if Acumera fails to uphold its obligations under the Master Agreement with Dairy Queen. However, the franchisee may be required to return any products supplied by Acumera at Acumera's discretion and expense. The franchisee remains responsible for any fees that accrued before the termination date.
It's important to note that if the Dq Treat franchisee chooses to continue using Acumera's services after the Master Agreement is terminated, the portions of the agreement not related to Dairy Queen's duties will remain in effect, and the franchisee will be responsible for all incurred fees as long as the services are used. The agreement will not extend beyond the initial term if the Master Agreement is terminated before the end of the initial term, or beyond the current renewal term if terminated after the initial term.