What is the effect of the Rider on the original Desi District franchise agreement?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
or (D) display decorations or materials; at an expense to the franchisee that is indeterminate, determined by a third party, or determined by a formula, unless the franchise agreement specifies the maximum percentage of gross monthly sales or the maximum absolute sum that the franchisee may be required to pay.
- 3. Effective Date. This Rider is effective as of the Effective Date.
Agreed to by:
DESI DISTRICT FRANCHISE GROUP, LLC
MARYLAND RIDER TO FRANCHISE AGREEMENT AND MULTI-UNIT DEVELOPMENT AGREEMENT
Delaware Limited Liability (the "Agreement"), between Desi District Franchise Group, LLC, a ("Desi District Franchise Group") and Company , a ("Franchisee"). 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement. The "Maryland Franchise Law" means Disclosure Law, Business Regulation Article, §14-206, Annotated Code of Maryland. the Maryland Franchise Registration and 2. Releases, Estoppels and Waivers of Liability. franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Law. All representations requiring prospective 3. Statute of Limitations. Any provision of the Agreement limitations for causes of action shall not apply to causes of action under the Maryland Franchise Law, Business Regulation Article, §14-227, Annotated Code of Maryland. Franchisee must bring an action under such law within three years after the grant of the franchise. which provides for a period of 4. Jurisdiction. Franchisee does not waive its right to file a lawsuit alleging a cause of action Maryland. arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of 5. Effective Date. Agreed to by: This Rider is effective as of the Effective Date. FRANCHISEE: LLC DESI DISTRICT FRANCHISE GROUP,
MINNESOTA RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
| This Rider amends the Franchise and Multi-Unit Development Agreement dated | ||||||||
|---|---|---|---|---|---|---|---|---|
| (the "Agreement"), between Desi District Franchise Group, LLC, a | ||||||||
| Delaware | Limited | Liability | Company , a ("Franchisee"). | ("Desi | District | Franchise | Group") | and |
- 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement. The "Minnesota Act" means Minnesota Statutes, Sections 80C.01 to 80C.22.
- **2.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, the franchise agreement is amended by the inclusion of a Rider. These Riders are specific to certain states, including Maryland, Minnesota, New York, North Dakota, Rhode Island, and Washington, and are designed to ensure compliance with local franchise laws.
For example, the Maryland Rider clarifies that releases, estoppels, or waivers of liability do not act as such under Maryland Franchise Law. It also specifies a three-year statute of limitations for actions under Maryland Franchise Law. Similarly, the North Dakota Rider includes several amendments to ensure compliance with North Dakota law, such as restrictions on non-compete covenants, arbitration locations, and waivers of jury trials or punitive damages. The Minnesota Rider states that the franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief, and a court will determine if a bond is required.
In practical terms, these Riders modify the original franchise agreement to protect the franchisee's rights and ensure that the agreement adheres to the specific legal requirements of the franchisee's state. Prospective Desi District franchisees should carefully review the Rider applicable to their state to understand how it alters the terms of the standard franchise agreement. This ensures that franchisees are aware of their rights and obligations under local laws, providing a more transparent and legally sound franchising relationship.