What accounting procedures will Desi District provide to franchisees?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- E. Establishing and using administrative, bookkeeping, accounting, and inventory control procedures. We will provide you our recommended procedures for administration, bookkeeping, accounting, and inventory control (Section 5.5). We may make any such procedures part of required (and not merely recommended) procedures for our system.
Market introduction plan. You must develop a market introduction plan and obtain our approval of the plan at least 30 days before the projected opening date of your business.
Required spending. After you open, you must spend up to 2% of gross sales each month on marketing your business.
Point of Sale and Computer Systems
We require you to buy (or lease) and use a point-of-sale system and computer system as follows:
TOAST –Eatery POS
- Software license
- POS Device
- Kitchen Display Screens
- Handheld Devices
- Kiosks
Block POS -Market POS
- Software license
- POS Device / Display / Server
The system will include our currently required POS/CRM system, credit card processing system, and accounting platform, such as QuickBooks. These systems will generate or store data such as inventory/product details, sales transactions, client, employee, scheduling, reporting, and accounting information.
We estimate that these systems will cost between $7,000 and $12,000 for the Eatery only or $10,000 to $15,000 to purchase for the Eatery & Market.
We are not obligated to provide any ongoing maintenance, repairs, upgrades, or updates. We do require you enter into such contract with a third party for the above platforms/system.
You must upgrade or update any system when we determine. There is no contractual limit on the frequency or cost of this obligation.
We estimate that the annual cost of any optional or required maintenance, updating, upgrading, or support contracts will be $21,600 to $36,000 which includes the software subscription fees.
You must give us independent access to the information that will be generated or stored in these systems. The information that we may access will include sales, customer data, and reports. There is no contractual limitation on our right to access the information.
| Manual Section | Number of Pages |
|---|---|
| Preface & Introduction | 35 |
| Establishing My Franchise Business | 37 |
| Personnel | 48 |
| Administrative Procedures | 25 |
| Daily Procedures | 67 |
| Selling & Marketing | 22 |
| Total Number of Pages | 234 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)
What This Means (2024 FDD)
According to the 2024 Desi District FDD, Desi District will provide franchisees with recommended procedures for administration, bookkeeping, accounting, and inventory control. These procedures may become required rather than just recommended for the franchise system.
Desi District requires franchisees to buy or lease a point-of-sale (POS) system and computer system, such as TOAST –Eatery POS or Block POS -Market POS. The system must include a POS/CRM system, credit card processing system, and accounting platform like QuickBooks. These systems will manage data related to inventory, sales transactions, client information, employee scheduling, reporting, and accounting. The estimated cost for these systems ranges from $7,000 to $12,000 for the Eatery only and $10,000 to $15,000 for the Eatery & Market. Franchisees are responsible for maintenance, repairs, upgrades, and updates through a third-party contract, with estimated annual costs of $21,600 to $36,000, including software subscription fees.
Desi District will have independent access to the data generated or stored in these systems, including sales, customer data, and reports, without any contractual limitations on their access rights. This allows Desi District to monitor the franchisee's performance and ensure compliance with system standards. The Brand Standards Manual contains information on administrative procedures, with 25 pages dedicated to this topic.