DQ Settles with Franchisee Group
MINNEAPOLIS – Josh Schmieg, executive director of Dairy Queen Operators’ Association, a group which represents approximately one-third of the Dairy Queen system in the United States, said his members are pleased with a settlement that was reached with the association, franchisor American Dairy Queen and its Franchisee Advisory Council.
During arbitration, the three organizations met to exchange information on their various perspectives and interests. The parties reached an arrangement outside of the arbitration: When the advisory council meets in private sessions, absent Dairy Queen corporate staff, a representative from the independent association now must be present in those meetings. That is in addition to DQOA delegates having to be invited when Dairy Queen corporate employees attend FAC meetings.
Schmieg said, “We were seeking the transparency to be able to continue to monitor and we are please with the settlement.”
As part of the deal, DQOA agreed to maintain the confidentiality of the conversations held at these FAC only sessions. The advisory council believes the confidentiality is important to foster robust, uninhibited discussions that will enable the FAC to develop recommendations on behalf of the Dairy Queen system. With the new arrangement, the council feels Dairy Queen and its advisory council will be challenged by an independent view of DQOA on important business matters that impact franchisees.
The DQOA states on its website, “We hope this settlement is a first step down a path of improved cooperation and respect, so that we can all work together to advance our system and become even stronger in this very competitive industry.”
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