Under what condition is the Dq Treat termination fee not applicable?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
This subparagraph is not applicable to any termination or cancellation of a franchise agreement for an Authorized Location that did not open.
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 Franchise Disclosure Document, the termination fee is not applicable if the franchise agreement is terminated or canceled for an authorized location that did not open. This means that if a franchisee signs an agreement but never actually opens a Dq Treat store at the designated location, they will not be required to pay the termination fee should the agreement be terminated.
This provision protects potential franchisees from incurring significant financial penalties if, for some reason, they are unable to launch their Dq Treat business. Circumstances preventing the opening of a location could include issues with securing permits, construction delays, or failure to find suitable staff.
It is important for prospective Dq Treat franchisees to understand the conditions under which termination fees apply and do not apply. This specific exception can provide some reassurance to franchisees during the initial stages of setting up their business, as it mitigates some of the financial risks associated with failing to launch.