What is the definition of 'Restricted Parties' in the Desi District franchise agreement?

According to Desi District's 2024 Franchise Disclosure Document, the term 'Restricted Parties' pertains to specific individuals who are subject to non-compete restrictions outlined in the franchise agreement. During the term of the agreement, these 'Restricted Parties' are prohibited from engaging in any competitive activities against Desi District.

Specifically, 'Restricted Parties' include the franchisee, any owner of the franchise, and any spouse of an owner. This means that all these individuals are barred from having any ownership interest in, lending money or providing financial assistance to, providing any services to, or being employed by any competitor of Desi District during the term of the franchise agreement.

This definition is important for prospective franchisees to understand, as it directly impacts who is subject to the non-compete obligations. It extends beyond just the franchisee themselves to include owners and their spouses, ensuring a broad scope of protection for Desi District's business interests. Franchisees should carefully consider these restrictions and ensure that all relevant parties are aware of and willing to comply with these obligations.