Who bears the expense of complying with recall instructions for Desi District?
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, the franchisee is responsible for the expenses associated with complying with recall instructions. Specifically, if Desi District or any vendor, supplier, or manufacturer issues a recall for an item used or sold in the franchisee's business, the franchisee must stop using or selling the item immediately.
The franchisee is then obligated to comply with all instructions from Desi District or the item's vendor, supplier, or manufacturer. This compliance, including the recall, repair, and/or replacement of the item, is to be done at the franchisee's own expense.
This means that a Desi District franchisee will have to bear the financial burden of any product recalls, which could include costs related to stopping sales, repairing or replacing the recalled items, and any other associated expenses. This is a potentially significant financial risk that prospective franchisees should consider.