Whose financial statements are included in the Dq Treat disclosure document?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The following audited financial statements of IDQ are included in this disclosure document as Exhibit K: consolidated balance sheets of IDQ at December 31, 2024 and 2023 and related consolidated statements of income and comprehensive income, stockholder's equity and cash flows for each of the years ended December 31, 2024, 2023 and 2022, together with the independent auditor's report.
These financial statements are the consolidated financial statements of IDQ, the parent corporation of ADQ and its other subsidiaries. ADQ's separate financial statements are not included in this disclosure document. Should ADQ fail to fulfill its obligations to its franchisees, however, IDQ unconditionally guarantees to fulfill such obligations. A copy of IDQ's written Guarantee of Performance is included in Exhibit K.
Source: Item 21 — UItem 21U***:** U**Financial Statements (FDD page 67)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, the audited financial statements of International Dairy Queen, Inc. (IDQ) are included as Exhibit K. These statements consist of consolidated balance sheets as of December 31, 2024, and 2023, along with related consolidated statements of income, comprehensive income, stockholder's equity, and cash flows for the years ending December 31, 2024, 2023, and 2022, accompanied by the independent auditor's report.
The FDD clarifies that these financial statements are consolidated, representing IDQ, the parent corporation of American Dairy Queen Corporation (ADQ), which is the direct franchisor for Dq Treat, and its other subsidiaries. It is explicitly stated that ADQ's separate financial statements are not included in the disclosure document.
However, the document provides an important safeguard for prospective franchisees: IDQ unconditionally guarantees that it will fulfill ADQ's obligations to its franchisees should ADQ fail to do so. A copy of IDQ's written Guarantee of Performance is included as part of Exhibit K. This guarantee provides an added layer of financial security for franchisees, as the parent company, IDQ, stands behind the financial obligations of its subsidiary, ADQ.