Under what conditions can a Dq Treat customer terminate the agreement for convenience?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement begins when fully executed by both Customer and Vendor, and continues for a period of five (5) years, unless earlier termination of this Agreement or the expiration or termination of the MSA.
Customer may terminate this Agreement for convenience, upon thirty (30) days written notice to CDM.
In the event Customer terminates this Agreement for convenience, CDM will refund, on a pro-rated basis, any fees previously paid for services that have not been delivered as of the date of termination of this Participation Agreement.
In the event of termination by Customer, Customer shall reimburse Vendor for any warranties that were paid in advance on behalf of Customer on a pro-rated basis from the amount paid by Customer prior to the date of termination (this amount will be provided by Vendor to Customer when notice of termination is given to Vendor).
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 FDD, a Customer (which appears to be a reference to a party contracting with CDM, not an end consumer of Dq Treat products) has the option to terminate the agreement for convenience under specific conditions. The agreement initially lasts for five years but can be terminated earlier. To do so, the Customer must provide CDM with a written notice 30 days in advance.
If the Customer terminates the agreement for convenience, CDM is obligated to refund any fees that were previously paid for services that have not yet been provided, with the refund amount being pro-rated based on the termination date. Additionally, the Customer is required to reimburse the Vendor (likely CDM) for any warranties that were paid in advance on the Customer's behalf, also on a pro-rated basis. The Vendor will provide the Customer with the exact amount owed for these warranties when the termination notice is given.
It is important to note that this termination clause appears to apply to a specific agreement between a Customer and CDM, and not to the franchise agreement between Dq Treat and its franchisees. The term 'Customer' in this context does not refer to the end consumers of Dq Treat's products. Prospective franchisees should carefully review all termination clauses within their franchise agreement to understand their rights and obligations.