Who determines the territory for a Desi District franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group determines the territory for a franchise. The territory specifics will be outlined in the franchise agreement. The FDD states that the territory will have a population of approximately 50,000 people within a 5-mile radius for an Eatery and approximately 100,000 people within a 10-mile radius for a Grocery Market.
The territory is typically specified as a radius around the franchise location, but Desi District can use other boundaries such as county lines, political boundaries, streets, geographical features, or trade areas. The specific location of the franchise is subject to approval by Desi District. If a location and territory are not stated on the Summary Page, the franchisee must find a potential location within the Development Area and submit it to Desi District for acceptance.
Desi District will issue a Location Acceptance Letter, which includes the location and territory, once they accept the proposed location. The franchisor's discretion in determining the territory is made in good faith and substantially follows the guidelines in Item 12 of the Franchise Disclosure Document. A franchisee does not have the right to relocate their business, and Desi District has no obligation to approve any request for relocation.