Under what conditions can a Dq Treat franchise be renewed or extended?
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 the original 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 sufficiently long duration to maximize the potential renewal term. If the lease is shorter than 15 years, it could limit the franchisee's ability to operate the Dq Treat business for the full potential renewal period.
This conditionality is fairly standard in the franchise industry, as the physical location is essential for most brick-and-mortar businesses. Franchisees should carefully consider the lease terms and renewal options in conjunction with the franchise agreement to ensure long-term business viability. It would be prudent for a potential franchisee to discuss lease negotiation strategies with existing Dq Treat franchisees and seek advice from a legal professional experienced in franchise law.