Under what conditions can a Dq Treat franchise agreement be renewed or extended, and for what duration?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise agreement | Summary |
|---|---|---|
| b. Renewal or extension of | Section 4.3 | Renewal for one additional term for the shorter |
| the term | of 15 years or the remaining term of the lease. |
Source: Item 16 — UItem 16U***:** U**Restrictions on What the Franchisee May Sell (FDD pages 51–55)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for one additional term. The length of this renewal term is limited to either 15 years or the remaining term of the lease, whichever is shorter. This means that if a franchisee's initial lease has less than 15 years remaining at the time of renewal, the renewal term will be capped at the remaining lease term.
For a prospective Dq Treat franchisee, this indicates that the ability to renew the franchise is tied to the lease agreement for the store location. It is crucial to negotiate favorable lease terms with a sufficient duration to maximize the potential renewal term. Franchisees should carefully consider the lease length when selecting a location and understand how it impacts their long-term investment and operational plans.
This renewal structure is fairly common in the franchise industry, particularly for businesses that rely on a physical location. The shorter of the two terms (15 years or remaining lease) protects both the franchisee and Dq Treat. It allows the franchisee to continue operating the business, while also ensuring that Dq Treat can reassess the location and potentially make changes if the lease is not extended. Franchisees should discuss renewal conditions and lease requirements with Dq Treat during their due diligence process.