What constitutes slander or libel against Desi District Franchise Group that could lead to termination?

According to the 2024 Desi District Franchise Disclosure Document, if a franchisee or any owner of the franchise slanders or libels Desi District or any of its employees, directors, or officers, Desi District has grounds to terminate the franchise agreement. This clause protects the reputation and brand image of Desi District.

Slander and libel are forms of defamation. Slander is spoken defamation, while libel is written defamation. In either case, the statement must be false and damaging to the reputation of Desi District or its personnel. The inclusion of 'any owner' extends this provision beyond just the franchisee to cover anyone with an ownership stake in the franchise.

This provision is included under section 14.2(c) which means that Desi District can terminate the agreement without providing an opportunity to cure. This means that if Desi District believes the franchisee or owner has slandered or libeled them, they can immediately terminate the agreement without giving the franchisee a chance to correct the behavior. This is a significant risk for franchisees, as the interpretation of what constitutes slander or libel can be subjective and could lead to disputes.