Under what conditions is the balance of the initial franchise fee refundable for a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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Initial Franchise Fee
You must pay ADQ a $25,000 initial franchise fee for a single franchise, the first $10,000 of which is a non-refundable deposit due when you submit a franchise application, which is included in this disclosure document as Exhibit D. The balance of the initial franchise fee is due when ADQ approves the franchise application and issues a written consent letter. You do not pay an initial franchise fee if you are a conversion franchisee, an existing franchisee relocating a restaurant under ADQ's relocation policy, or an existing Orange Julius® franchisee converting an Orange Julius® location to a DQ® Treat location.
The initial $10,000 deposit is not refundable and the balance of the initial franchise fee is refundable only in the following instances: (1) if you withdraw your application after ADQ has approved it but before you commence construction; (2) if your required training attendees fail to successfully complete the training program and your approval is cancelled (see Item 11 for information on required training attendees); (3) if your site is not designated and ADQ does not consent to the site within 90 days after the date ADQ approves your application; or (4) if you have not commenced construction within 180 days from the franchise agreement effective date. In these instances, ADQ has the right to cancel any agreements that have been sign
Source: Item 5 — Initial Fees (FDD pages 19–20)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the initial franchise fee is $25,000, with the first $10,000 being a non-refundable deposit due upon submitting the franchise application. The remaining balance is due when ADQ approves the application and issues a written consent letter. However, the balance of the initial franchise fee is refundable under specific conditions.
The balance of the initial franchise fee is refundable if the applicant withdraws their application after ADQ has approved it but before construction begins. It is also refundable if the required training attendees fail to complete the training program successfully, leading to cancellation of the approval. Additionally, a refund is possible if a site is not designated and ADQ does not consent to the site within 90 days after the application's approval date. Finally, the balance is refundable if construction has not commenced within 180 days from the franchise agreement's effective date.
In any of these instances where a refund is triggered, Dq Treat has the right to cancel any agreements signed without providing an opportunity to cure the issue. This means that franchisees need to be aware of these conditions and ensure they meet the necessary requirements and timelines to avoid potential cancellation and loss of the initial investment.
It is important to note that the initial $10,000 deposit is non-refundable under any circumstances. Prospective franchisees should carefully consider these terms and conditions before submitting their application and paying the initial deposit to Dq Treat.