What criteria does Desi District Franchise Group provide for selecting Desi District locations?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
(a) Selecting Location. Desi District Franchise Group shall provide its criteria for Desi District locations to Franchisee. Desi District Franchise Group will review and advise Franchisee regarding potential locations submitted by Franchisee.
6.1 Determining Location and Territory. If the Location and Territory are not stated on the Summary Page:
(i) Franchisee shall find a potential Location within the Development Area described on the Summary Page.
Franchisee shall submit its proposed Location to Desi District Franchise Group for acceptance, with all related information Desi District Franchise Group may request.
If Desi District Franchise Group does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (ii) When Desi District Franchise Group accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory.
Desi District Franchise Group shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document.
If Desi District Franchise Group fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code which includes the location of the franchised business and the immediately surrounding zip codes which together comprise a total of 100,000 population from the location of the franchised business.
(iii) Desi District Franchise Group's advice regarding or acceptance of a site is not a representation or warranty that the Business will be successful, and Desi District Franchise Group has no liability to Franchisee with respect to the location of the Business.
6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by Desi District Franchise Group, Franchisee must submit the proposed lease to Desi District Franchise Group for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by Desi District Franchise Group.
6.3 Development. Franchisee shall construct (or remodel) and finish the Location in conformity with Desi District Franchise Group's System Standards.
If required by Desi District Franchise Group, Franchisee shall engage the services of an architect licensed in the jurisdiction of the Location.
Franchisee shall not begin any construction or remodeling work without first obtaining Desi District Franchise Group's approval of Franchisee's plans.
Desi District Franchise Group may, but is not required to, inspect Franchisee's construction or remodeling progress at any reasonable time.
Franchisee shall not rely upon any information provided or opinions expressed by Desi District Franchise Group or its representatives regarding any architectural, engineering, or legal matters (including without limitation the Americans With Disabilities Act) in the development and construction of the Business, and Desi District Franchise Group assumes no liability with respect thereto.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group will provide its criteria for Desi District locations to the franchisee. The franchisee is responsible for finding a potential location within the Development Area and submitting it to Desi District Franchise Group for acceptance, along with any related information the company requests. Desi District Franchise Group will review and advise the franchisee regarding potential locations submitted. If Desi District Franchise Group does not accept the proposed location in writing within 30 days, it is deemed rejected.
Once Desi District Franchise Group accepts a location, it will issue a Location Acceptance Letter, which states the location and territory. Desi District Franchise Group determines the territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Desi District Franchise Group fails to state the territory in writing within 60 days after the franchisee opens the business to the public, the territory will be deemed to be the zip code which includes the location of the franchised business and the immediately surrounding zip codes which together comprise a total of 100,000 population from the location of the franchised business.
The FDD states that Desi District Franchise Group's advice regarding or acceptance of a site is not a representation or warranty that the business will be successful, and Desi District Franchise Group has no liability to the franchisee with respect to the location of the business. The franchisee must submit any proposed lease to Desi District Franchise Group for written approval if requested. The lease term (including renewal terms) must be for a period of not less than the term of the Franchise Agreement, and the franchisee must use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by Desi District Franchise Group.
The franchisee is responsible for constructing (or remodeling) and finishing the location in conformity with Desi District Franchise Group's System Standards. If required by Desi District Franchise Group, the franchisee must engage the services of an architect licensed in the jurisdiction of the location. The franchisee cannot begin any construction or remodeling work without first obtaining Desi District Franchise Group's approval of the plans. Desi District Franchise Group may, but is not required to, inspect the franchisee's construction or remodeling progress at any reasonable time. The franchisee cannot rely upon any information provided or opinions expressed by Desi District Franchise Group or its representatives regarding any architectural, engineering, or legal matters in the development and construction of the business, and Desi District Franchise Group assumes no liability with respect thereto.