Under what condition can Punchh charge reasonable administrative fees to Dq Treat Participating Locations that do not participate in the National Marketing program?

According to Dq Treat's 2025 Franchise Disclosure Document, Punchh, the loyalty program provider, may charge administrative fees to Dq Treat locations that do not participate in the National Marketing program under a specific condition. This condition is tied to a significant increase in the number of non-participating locations.

Specifically, if the number of Dq Treat Participating Locations that do not participate in the National Marketing program increases by more than 25% year-over-year, Punchh reserves the right to charge reasonable administrative fees. This discretion is intended to help Punchh manage the increased direct billing obligations that arise from a larger number of non-participating locations. These administrative fees can then be passed through to the individual Dq Treat locations that are utilizing Punchh's services but are not part of the National Marketing program.

This policy has implications for Dq Treat franchisees. If a franchisee chooses not to participate in the National Marketing program, they may be subject to these administrative fees if the overall number of non-participating locations increases substantially. It is important for prospective franchisees to understand this potential cost and factor it into their financial planning. Franchisees should also inquire with Dq Treat about the historical trends in National Marketing program participation to assess the likelihood of these fees being applied.