What document must be executed before the Initial Franchise Fee is paid to Desi District Franchise Group?

According to Desi District's 2024 Franchise Disclosure Document, a prospective franchisee must execute a Multi-Unit Development Agreement (MUDA) before paying the Initial Franchise Fee. Specifically, upon the execution of the MUDA, the franchisee is obligated to pay the total Initial Franchise Fee to Desi District Franchise Group, and this fee is non-refundable. This requirement is part of the agreement when a franchisee commits to developing multiple Desi District businesses.

For the first store, the Franchise Agreement is executed simultaneously with the MUDA. However, for each additional Desi District franchise, the franchisee must execute Desi District's then-current standard form of franchise agreement no later than three business days after leasing or acquiring a location. This clarifies that the MUDA serves as an overarching agreement for multi-unit development, while separate franchise agreements are required for each individual location.

It is important to note that the MUDA itself does not grant the franchisee the right to construct, open, or operate a Desi District business. These rights are only conferred through the separate franchise agreements executed for each location under the terms of the MUDA. This structured approach allows Desi District to manage and control the expansion of its franchise network while ensuring each location adheres to the current standards and requirements.