When are the additional initial franchise fees due for a Desi District franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| First franchise (see table above) | $1,012,333 - $2,503,000 | Varies | Varies | Varies |
| Additional initial franchise fees (see Note 17) | $30,000 - $120,000 | Check or wire transfer | Upon signing the MUDA | Us |
| Business planning and miscellaneous expenses | $1,000 - $5,000 | Check | As incurred | Vendors and suppliers |
| Total | $1,043,333 - $2,628,000 | This is the total estimated initial investment to enter into a Multi-Unit Development Agreement for the right to own a t |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, additional initial franchise fees are due upon signing the Multi-Unit Development Agreement (MUDA). These fees, which range from $30,000 to $120,000, are paid to Desi District via check or wire transfer. This applies when a franchisee commits to opening multiple Desi District locations under a development agreement.
The specific amount of the additional initial franchise fees depends on the number of franchises the franchisee commits to developing. The FDD notes that the estimate assumes signing a Multi-Unit Development Agreement for three to five franchises. The franchise fee for the first unit is counted in the "Estimated Initial Investment – Franchise Agreement" table. The initial franchise fees are reduced to $30,000 for the second and each additional franchise.
Prospective franchisees should carefully consider the financial implications of committing to a Multi-Unit Development Agreement, as the additional initial franchise fees represent a significant upfront investment. It is important to review the terms of the MUDA and understand the development schedule and any associated obligations. Franchisees should also confirm the exact amount of the additional franchise fees with Desi District before signing the agreement.