What efforts must a Desi District franchisee make to resolve customer complaints?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.8 Customer Complaints. Franchisee shall use its best efforts to promptly resolve any customer complaints.
Desi District Franchise Group may take any action it deems appropriate to resolve a customer complaint regarding the Business, and Desi District Franchise Group may require Franchisee to reimburse Desi District Franchise Group for any expenses.
- 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by Desi District Franchise Group for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping.
Desi District Franchise Group shall share with Franchisee the results of these programs, as they pertain to the Business.
Franchisee must meet or exceed any
minimum score requirements set by Desi District Franchise Group for such programs. Desi District Franchise Group may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees are required to use their best efforts to promptly resolve any customer complaints. Desi District itself retains the right to take action to resolve customer complaints and may require the franchisee to reimburse them for any expenses incurred in doing so. This indicates that franchisees are expected to handle complaints efficiently, but Desi District can intervene if necessary. This could involve financial implications for the franchisee if Desi District needs to step in. Franchisees should, therefore, prioritize customer service and complaint resolution to avoid potential costs.
Furthermore, Desi District franchisees must participate in programs required by Desi District for obtaining customer evaluations, reviewing compliance with the system, and managing customer complaints. These programs may include customer feedback systems, customer survey programs, and mystery shopping. Desi District will share the results of these programs with the franchisee, as they pertain to the business. This means franchisees must actively engage in these evaluation and compliance programs, which are designed to monitor and manage customer feedback. The cost of participation in these programs is borne by the franchisee, representing an ongoing operational expense.
Desi District may set minimum score requirements for these programs, including minimum scores that the franchisee must receive from the public on internet review sites like Yelp or Google. This adds another layer of accountability, as franchisees are not only expected to resolve complaints but also maintain a positive online reputation. Failure to meet these minimum score requirements could lead to further action by Desi District, as outlined elsewhere in the agreement. Therefore, franchisees must focus on consistently delivering high-quality service and actively managing their online presence to meet Desi District's standards.