During arbitration or litigation, are both Desi District Franchise Group and the franchisee required to comply with the Franchise Agreement?

According to Desi District's 2024 Franchise Disclosure Document, both the franchisor and the franchisee are generally required to continue fulfilling their obligations under the Franchise Agreement during any arbitration or litigation, unless the agreement has been terminated. This means that even while a dispute is being resolved, the franchisee must continue to operate the business according to Desi District's standards, and Desi District must continue to provide the support and resources outlined in the agreement.

This requirement ensures business continuity and protects both parties' interests during the dispute resolution process. For the franchisee, this means continuing to pay royalties and adhering to operational standards. For Desi District, it means providing ongoing support and upholding their brand standards.

However, it's important to note the condition that this obligation ceases if the Franchise Agreement has been terminated. Franchisees should understand the specific conditions under which the agreement can be terminated, as this would alter their obligations during a dispute. Prospective franchisees should seek legal counsel to fully understand their rights and obligations during arbitration or litigation.