Under the Dq Treat Participation Agreement, can GIFT subcontract with others to provide services?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
GIFT may subcontract with others to provide Services provided that no such use of subcontractors will relieve GIFT of its obligations under this Agreement.
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, GIFT (First Data Resources, LLC), as a service provider for the Dq Treat stored value card program, is permitted to subcontract with other entities to fulfill its service obligations. However, this subcontracting does not relieve GIFT of its responsibilities under the Participation Agreement.
This means that while GIFT can delegate certain tasks or functions to subcontractors, it remains ultimately accountable for ensuring that all services are properly delivered to Dq Treat franchisees. The franchisee should not be directly impacted by GIFT's use of subcontractors, as GIFT retains the contractual obligation to provide the services outlined in the agreement.
This arrangement is fairly common in franchising, where franchisors or their service providers often outsource specific functions to specialists. However, it's important for Dq Treat franchisees to understand that GIFT remains the primary point of contact and is responsible for the performance of its subcontractors. If a subcontractor fails to meet the required standards, the franchisee's recourse is still with GIFT, not the subcontractor directly.