What actions must a Desi District franchisee take in the event of a product recall?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.6 Product Recalls. If Desi District Franchise Group or any vendor, supplier, or manufacturer of an item used or sold in Franchisee's Business issues a recall of such item or otherwise notifies Franchisee that such item is defective or dangerous, Franchisee shall immediately cease using or selling such item, and Franchisee shall at its own expense comply with all instructions from Desi District Franchise Group or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if Desi District or any vendor, supplier, or manufacturer of an item used or sold in the franchisee's business issues a recall, the franchisee must immediately stop using or selling the item.
The franchisee is also required to comply with all instructions from Desi District or the vendor, supplier, or manufacturer regarding the recalled item. This includes actions such as the recall, repair, and/or replacement of the item, all of which are to be done at the franchisee's own expense.
This clause places the onus on the Desi District franchisee to bear the costs associated with product recalls, which can include lost sales, disposal of recalled items, and the expense of replacements. Franchisees should ensure they have sufficient insurance coverage and financial resources to manage potential recall situations. It is also important for franchisees to maintain open communication with Desi District and approved vendors to stay informed about any potential product issues and recall procedures.