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What is the dependency between the Summary Page and the determination of the Desi District franchise location?

Desi_District Franchise · 2024 FDD

Answer from 2024 FDD Document

"Location" means the location stated on the Summary Page. If no location is stated on the Summary Page, then the Location will be determined in accordance with Section 6.1.

  • 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.

  • (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.

Source: Item 22 — CONTRACTS (FDD page 52)

What This Means (2024 FDD)

According to the 2024 Desi District Franchise Disclosure Document, the Summary Page plays a key role in determining the franchise location. The "Location" is defined as the location stated on the Summary Page. However, if no location is specified on the Summary Page when the franchise agreement is signed, the location will be determined according to Section 6.1 of the agreement.

Section 6.1 outlines the process for determining the location if it's not already on the Summary Page. The franchisee is responsible for finding a potential location within the Development Area, which is described on the Summary Page. The franchisee must then submit the proposed location to Desi District for approval, including any related information requested by Desi District. Desi District has 30 days to either accept or reject the proposed location in writing; failure to respond within 30 days results in automatic rejection.

Once Desi District accepts a location, they will issue a Location Acceptance Letter, which includes the location and territory. Desi District determines the territory in good faith, following the guidelines in Item 12 of the Franchise Disclosure Document. It is important to note that Desi District's advice or acceptance of a site does not guarantee the success of the business, and Desi District assumes no liability regarding the location of the business.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.