What is considered abandoning or ceasing operation of the Business for Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- (vii) Franchisee abandons or ceases operation of the Business for more than five consecutive days;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, abandoning or ceasing operation of the Business for more than five consecutive days constitutes a breach of the franchise agreement.
This clause is significant for prospective franchisees as it sets a clear standard for maintaining continuous business operations. Failure to adhere to this standard could lead to termination of the franchise agreement by Desi District. The franchisee should ensure they have sufficient operational plans and resources to prevent any unplanned closures exceeding the five-day limit.
It is important to note that the FDD does not define what constitutes "operation of the business." A prospective franchisee should clarify with Desi District what activities are required to avoid being considered in violation of this clause. For example, would offering delivery-only service during a temporary closure of the physical restaurant be considered "operation of the business?"