Under what conditions can a Dq Treat Operated Location, Participating Franchisee, or Sub-Franchisee assign its rights or delegate its obligations under the Participation Agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.4 Assignment. Operated Locations, Participating Franchisee or Sub-Franchisee may not assign its rights or delegate its obligations under this Participation Agreement without GIFT's prior written consent.
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, an Operated Location, Participating Franchisee, or Sub-Franchisee cannot assign its rights or delegate its obligations under the Participation Agreement without the prior written consent of GIFT.
This means that if a Dq Treat franchisee wishes to transfer their rights or responsibilities related to the Participation Agreement to another party, they must first obtain written approval from GIFT. This provision gives GIFT control over who participates in the program and ensures that any new party meets their standards.
This requirement is typical in franchising, as franchisors want to maintain control over their brand and ensure that any new operators are qualified and capable of meeting the franchise's standards. Franchisees should carefully consider this restriction, as it could impact their ability to sell or transfer their franchise in the future.