Under what conditions can a Dq Treat licensee renew their license for an additional term?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ent is signed as a requirement of renewal
- 4.2 Expiration Date. Company will designate the expiration date of this agreement on the cover page and the date designated by Company shall control.
- 4.3 Renewal. If the following conditions are met, Licensee may renew its license for an additional renewal term, which will be the shorter of 15 years or the period that Licensee has the right to maintain possession of the Restaurant premises:
- (A) Licensee gives Company written notice of its intent to renew between 3 6 months before the expiration of the term;
- (B) Licensee signs Company's then current operating agreement. The terms of the then current operating agreement may differ materially from this agreement, including higher or additional fees;
- (C) Licensee has complied with the modernization and replacement provisions of section 5.5;
- (D) Licensee is in good standing, including that it has satisfied all monetary obligations on a timely basis, and does not have a history of substantial noncompliance with the System or this agreement;
- (E) Licensee has the right to maintain possession of the Restaurant premises, and has provided written proof of its ability to remain in possession of the premises throughout the renewal period if leasing or subleasing;
- (F) Licensee pays Company a non-refundable renewal fee of $1,000 times the number of years (including partial years) included in the renewal term, but not more than $10,000, which is due 30 days before expiration of this agreement. For example, if the renewal operating agreement is for 7½ years, the renewal fee would be $8,000;
- (G) Licensee and each Principal Owner sign a general release, in a form acceptable to Company, of all claims against Company and its affiliates, officers, directors, employees, and agents; and
- (H) Company approves the location where the Restaurant will be operated during the renewal period.
- **5.
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 Dq Treat's 2025 Franchise Disclosure Document, a licensee may renew their license for an additional term if they meet several conditions. The renewal term will be the shorter of 15 years or the period that the licensee has the right to maintain possession of the restaurant premises.
To be eligible for renewal, the Dq Treat licensee must provide written notice of their intent to renew between 3 and 6 months before the expiration of the current term. They must also sign Dq Treat's then-current operating agreement, which may have terms that differ significantly from the original agreement, potentially including higher or additional fees. The licensee must have complied with the modernization and replacement provisions outlined in section 5.5 of the agreement.
Additionally, the Dq Treat licensee must be in good standing, meaning they have satisfied all monetary obligations on time and do not have a history of substantial noncompliance with the Dq Treat system or the operating agreement. They must also demonstrate the right to maintain possession of the restaurant premises throughout the renewal period, providing written proof if leasing or subleasing. The licensee must pay a non-refundable renewal fee of $1,000 times the number of years in the renewal term, up to a maximum of $10,000, due 30 days before the agreement's expiration. For example, a 7½ year renewal would incur an $8,000 fee. Finally, the licensee and each principal owner must sign a general release of all claims against Dq Treat, and Dq Treat must approve the location where the restaurant will operate during the renewal period.