What actions must a Desi District franchisee take if notified of a defective item?
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 of such item or otherwise notifies the franchisee that such item is defective or dangerous, the franchisee must immediately cease using or selling such item.
Furthermore, the Desi District franchisee is responsible for complying with all instructions from Desi District or the vendor, supplier, or manufacturer regarding the item. This includes, without limitation, the recall, repair, and/or replacement of the item, all at the franchisee's own expense.
This clause places the onus on the franchisee to act swiftly and decisively upon notification of a product recall or defect. The franchisee bears the financial burden of compliance, including the costs associated with ceasing sales, performing recalls, and handling repairs or replacements. This is a fairly standard practice in franchising, as the franchisee is typically responsible for the day-to-day operations and quality control at their location.