How will Desi District determine the territory granted in the franchise agreement?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
ect to our approval.
Grant of Territory
Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 50,000 people within a 5-mile radius for the Eatery and a population of approximately 100,000 people within a 10-mile radius for the Grocery Market. Your territory will usually be specified as a radius around your location; however, we may
use other boundaries (such as county lines or other political boundaries, streets, geographical features, or trade area).
Relocation; Establishment of Additional Outlets
You do not have the right to relocate your business, and we have no obligation to approve any request for relocation. Our policy is to approve relocation of a franchisee's business on caseby-case basis, considering factors such as changes in demographics, profitability of your current business, or a loss of your premises due to circumstances beyond your control.
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the franchise agreement will specify a territory determined by Desi District. For an Eatery, the territory will have a population of approximately 50,000 people within a 5-mile radius. For the Grocery Market, the territory will have a population of approximately 100,000 people within a 10-mile radius.
The territory is usually specified as a radius around the franchisee's location. However, Desi District may use other boundaries such as county lines, political boundaries, streets, geographical features, or trade areas to define the territory. If the specific location is not known when the franchise agreement is signed, the location is subject to Desi District's approval.
If Desi District 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. Desi District retains the right to establish and license others to establish and operate Desi District businesses outside the Territory, notwithstanding their proximity to the Territory or their impact on the Business.