What is a 'unified purchasing program' in the context of a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ADQ has received and offered proposals to create a unified purchasing program as a joint effort between ADQ and a cooperative association of DQ® restaurant and store operators, to benefit the entire DQ® system in the United States. For any period during which there is an agreement for a unified purchasing program: (1) ADQ will designate as approved the manufacturers, suppliers or distributors properly selected within the structure of that program; and (2) ADQ has the right to designate a single approved manufacturer, supplier and/or distributor of any approved products.
Source: Item 8 — UItem 8U***:** U**Restrictions on Sources of Products and Services (FDD pages 29–35)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, a 'unified purchasing program' is an agreement between ADQ (American Dairy Queen) and a cooperative association of DQ restaurant and store operators designed to benefit the entire DQ system in the United States. Under this program, ADQ designates approved manufacturers, suppliers, or distributors selected within the program's structure. ADQ also retains the right to designate a single approved manufacturer, supplier, and/or distributor for any approved products within the unified purchasing program.
For a prospective Dq Treat franchisee, this means that during the period when a unified purchasing program is in effect, the franchisee will be required to purchase certain products from the manufacturers, suppliers, or distributors designated by ADQ. This differs from the standard purchasing procedures where, in the absence of a unified purchasing program, franchisees can request approval for alternate suppliers for certain products, provided they are not among the items for which ADQ always designates a single approved source (like soft drinks or equipment).
The implementation of a unified purchasing program could impact a franchisee's operational costs and flexibility in sourcing products. While the program aims to benefit the entire DQ system, franchisees should evaluate whether the designated suppliers offer competitive pricing and quality. It is important for potential franchisees to inquire about the specifics of any current or planned unified purchasing programs, including the products covered, the selection process for suppliers, and the potential impact on their bottom line. Understanding these details will help franchisees make informed decisions about their investment and operational strategies.
It is also worth noting that ADQ has the right to designate a single approved manufacturer, supplier, or distributor for specific products, regardless of whether a unified purchasing program is in place. These products include soft drinks, third-party branded products, items related to limited-time offers, equipment, and Orange Julius proprietary items. This further restricts a franchisee's ability to choose suppliers for these essential items, emphasizing the importance of understanding ADQ's approved supplier network and its potential impact on costs and operations.