DQ Treat is a site-based quick-service retail model: the franchisee staffs an approved Street or Captive-venue store, sells ADQ-approved soft-serve, treats, beverages and limited food, fulfills in-store and authorized digital orders, and runs the unit through a franchisor-specified supply, POS, payment, loyalty, food-safety and reporting system.
What does a DQ Treat store sell, and who buys it?
The contractual offer is the full approved DQ soft-serve, treat and beverage menu plus a limited number of approved food items. The FDD identifies the market as the general public, while Captive-venue stores are specifically placed in high-foot-traffic venues such as malls, transportation terminals, hospitals, campuses, recreation facilities and office buildings.
The menu is a controlled system input
ADQ determines the authorized Menu and may change required items, ingredients, portions, appearance and packaging through the Operations Manual or other writing. To the fullest extent allowed by law, ADQ may specify menu prices. The franchisee may not add unapproved products or services without written consent.
Customer access is store-led, with authorized digital extensions
The Operating Agreement permits sales from the authorized store, not a general right to sell through internet, third-party or other off-site channels; ADQ may authorize or require those channels. The DQ Mobile App FAQ shows that online ordering and pickup options vary by participating location.
Evidence: 2026 DQ Treat FDD, Item 1 pp. 1-3; Item 12 pp. 40-42; Item 16 p. 45; DQ Treat Operating Agreement §§6.1-6.2. See the official DQ treats menu for current consumer-facing treat categories; availability remains location-specific.
How does work move through a DQ Treat unit?
The operating cycle is demand generation, order capture, payment and loyalty processing, standardized preparation, handoff and service, then management review and reporting. The sequence is driven by the franchise agreement, the required EPOS stack and ADQ's Operations Manual rather than by a franchisee-designed restaurant process.
- Actor
- ADQ plus the franchisee.
- Action
- ADQ sets national, regional and local sales-promotion programs; the franchisee uses furnished or approved creative and may execute approved local activity.
- System / asset
- System marketing calendars, NMF/DMA programs, DQ Rewards and approved digital/social materials.
- Output
- Store visit or authorized digital order opportunity.
- Actor
- Customer and store employee.
- Action
- An employee enters an in-store order in the required EPOS system; where enabled, an app or web order is routed through the DQ Mobile Ordering System.
- System / asset
- ParTech EPOS hardware/software and Olo digital ordering.
- Output
- Recorded order with item, price and transaction data.
- Actor
- Customer, store employee and designated processors.
- Action
- The unit accepts payment methods designated by ADQ; participating customers may earn or redeem DQ Rewards on qualifying orders.
- System / asset
- Fiserv processing, Verifone encryption, ValueLink/DQGC gift cards and Punchh loyalty.
- Output
- Authorized payment, gift-card activity and loyalty record where applicable.
- Actor
- Trained restaurant employees under manager supervision.
- Action
- Employees prepare approved products using specified ingredients, recipes, portions, appearance and packaging, then complete the customer handoff.
- System / asset
- Approved ingredients, equipment, menu boards, uniforms and Operations Manual procedures.
- Output
- Completed order consistent with DQ system and food-safety standards.
- Actor
- Designated Manager, Assistant Manager and store team.
- Action
- Managers run day-to-day operations, maintain trained staffing, sanitation and service standards, and respond to operational issues. ADQ may evaluate the store during the business day.
- System / asset
- Training certification, Operations Manual, health standards and evaluation procedures.
- Output
- Compliant operating shift and corrective action when needed.
- Actor
- Franchisee management, ADQ and approved supply chain.
- Action
- The franchisee retains business records, submits monthly operating reports by the 10th and a monthly profit-and-loss statement by the 20th, while purchasing only approved operating inputs.
- System / asset
- EPOS data, approved accounting methodology, USCI-sourced products and authorized warehouses.
- Output
- ADQ reporting, fee reconciliation, audit trail and restocked approved inputs.
Evidence: 2026 DQ Treat FDD, Items 8 and 11 pp. 23-39; DQ Treat Operating Agreement §§6.2, 6.5, 6.7-6.11, 6.15-6.16, 7.5-7.7 and 9.8-9.10. The public DQ Rewards page describes app, online and in-store rewards at participating locations.
Who runs the store, and which decisions remain with the franchisee?
The Controlling Owner does not have to manage the store day to day. A first DQ Treat store must instead have a full-time Designated Manager and one full-time Assistant Manager who complete ADQ's required training; the franchisee still controls hiring, compensation, scheduling, benefits, discipline and other personnel decisions.
Franchisee / Controlling Owner
- Hire, schedule, pay, discipline and manage restaurant employees.
- Maintain enough trained staff to operate to System Standards.
- Keep permits, insurance, records and legal compliance current.
- Attend required regional, marketing and operational meetings through the Controlling Owner or approved substitute.
ADQ
- Defines Menu, product preparation, equipment, uniform and sanitation standards.
- Updates the Operations Manual and approved product/supplier lists.
- Sets training requirements and may inspect/evaluate the unit.
- Controls system marketing programs and approval of advertising materials.
Required third parties
- Process POS, card, gift-card, mobile-order and loyalty transactions.
- Provide required firewall and digital menu-board services.
- Supply approved food, paper, packaging and other inputs through authorized channels.
The Controlling Owner may delegate daily shifts, but the FDD does not describe absentee ownership. The Controlling Owner retains authority to bind the franchisee and direct compliance; certified managers must devote full time and attention to on-premises management.
Evidence: 2026 DQ Treat FDD, Item 15 p. 44; Item 11 pp. 37-39; DQ Treat Operating Agreement §§7.5-7.7 and 10.4.
Which systems and suppliers are mandatory after opening?
ADQ requires approved products and can designate single suppliers for major operating categories. The 2026 FDD names an integrated stack for POS, payments, gift cards, mobile ordering, loyalty, firewall and digital menu boards, while Unified Supply Chain, Inc. (USCI) manages sourcing and authorized warehouse relationships for many physical inputs.
ADQ can change the Menu and product specifications, require EPOS/computer upgrades, access EPOS and stored operating data, revise Operations Manual standards, inspect the unit during the business day and require corrective training after an operational default.
Evidence: 2026 DQ Treat FDD, Item 8 pp. 23-28; Item 11 pp. 35-36; DQ Treat Operating Agreement §§6.4-6.5, 6.8, 6.10-6.11. Vendor context: PAR restaurant POS, Olo Ordering and PAR Engagement / Punchh.
How do Street and Captive-venue stores operate differently?
Both are single-site DQ Treat franchises with the same core brand controls, but their demand environment and operating-hour rule differ. Street stores serve conventional roadside or shopping-center trade areas; Captive-venue stores depend on host-venue traffic and may follow the venue's required hours instead of the standard daily operating minimum.
Street location
Captive-venue location
Sales from the authorized store have no territorial or customer restriction, but off-site, internet, social, mobile or third-party distribution requires ADQ authorization. An eligible Conversion Addendum may carry forward protected-territory rights from the prior agreement.
Evidence: 2026 DQ Treat FDD, Items 1 and 12 pp. 1-2 and 40-42; DQ Treat Operating Agreement §6.9. Consumer handoff options such as inside pickup, curbside or drive-thru are described on the DQ Mobile App FAQ and depend on the participating location.
What does Item 20 show about the operating network?
Item 20 does not isolate current DQ Treat stores. It combines DQ Treat, Dairy Queen/Limited Brazier and DQ soft-serve-only outlets, then separates direct-licensed outlets from territory-operator subfranchised outlets. The detailed status tables show 1,053 combined franchised outlets at December 31, 2025 and no company-owned outlets in this population.
Interpretation: the detailed Item 20 population declined from 1,120 outlets at 2023 year-end to 1,053 at 2025 year-end. Direct-licensed outlets increased from 729 to 743 during 2025, while the subfranchised population fell from 357 to 310.
Source: 2026 DQ Treat FDD, Item 20, detailed “Status of Franchised Outlets” tables, pp. 55 and 59. Counts are a combined population and are not a DQ Treat-only unit count.
The opening Item 20 summary does not reconcile for 2025: it lists 745 direct-licensed franchised outlets but 743 total outlets. The chart uses the detailed status table, which reports 743 and reconciles 2024 year-end to 2025 year-start.
What operating questions still need unit-level verification?
The FDD establishes a tightly specified operating framework, but several store-level facts are not disclosed. A buyer should verify the current configuration for the exact site and agreement rather than infer it from the broader DQ consumer experience or the combined Item 20 population.
- Exact DQ Treat-only footprint: Item 20 combines DQ Treat with legacy Limited Brazier and soft-serve-only stores; the exact 2025 DQ Treat count is not disclosed.
- Digital handoff modes: confirm mobile/web ordering, drive-thru, inside pickup, curbside, delivery and other authorized off-premises channels for the specific store.
- Site-specific Menu: confirm required and optional items, price directives, limited-time offers, and related equipment or training.
- Current supplier stack: verify current participation agreements because ADQ may change designated suppliers or require EPOS/computer updates.
- Conversion rights: for an eligible conversion, read the Conversion Addendum for any carried-forward protected-territory language.
What is the practical operating-model takeaway?
DQ Treat earns its store-level receipts by selling ADQ-approved treats, beverages and limited food through an authorized physical location and any digital channels ADQ enables. The franchisee's core responsibility is executing daily staffing, service, food safety and records within a heavily specified brand, supply and technology system.
The strongest dependency is ADQ control over the Menu, approved suppliers, Operations Manual, EPOS/data access, required technology and evaluations. Street versus Captive-venue hours are the main format distinction; a Controlling Owner may delegate daily management only to required certified managers.
The largest unresolved question is store-specific configuration: the FDD gives no exact DQ Treat-only outlet count and does not establish which off-premises ordering, delivery or pickup modes are active at a given store. Verify those points against current Operations Manual requirements, supplier agreements and the authorized-site configuration.