When entering into the Desi District Franchise Agreement, is the franchisee relying on statements not in the agreement or Disclosure Document?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
By signing this Agreement, Franchisee acknowledges the following:
- (1) Franchisee understands all the information in Desi District Franchise Group's Disclosure Document.
- (2) Franchisee understands the success or failure of the Business will depend in large part upon Franchisee's skills, abilities and efforts and those of the persons Franchisee employs, as well as many factors beyond Franchisee's control such as weather, competition, interest rates, the economy, inflation, labor and supply costs, lease terms, and the marketplace.
- (3) That no person acting on Desi District Franchise Group's behalf made any statement or promise regarding the costs involved in operating a Desi District franchise that is not in the Disclosure Document or that is contrary to, or different from, the information in the Disclosure Document.
- (4) That no person acting on Desi District Franchise Group's behalf made any claim or representation to Franchisee, orally, visually, or in writing, that contradicted the information in the Disclosure Document.
- (5) That no person acting on Desi District Franchise Group's behalf made any statement or promise regarding the actual, average or projected profits or earnings, the likelihood of success, the amount of money Franchisee may earn, or the total amount of revenue a Desi District franchise will generate, that is not in the Disclosure Document or that is contrary to, or different from, the information in the Disclosure Document.
- (6) That no person acting on Desi District Franchise Group's behalf made any statement or promise or agreement, other than those matters addressed in this Agreement, concerning advertising, marketing, media support, market penetration, training, support service, or assistance that is contrary to, or different from, the information contained in the Disclosure Document.
- (7) Franchisee understands that this Agreement contains the entire agreement between Desi District Franchise Group and Franchisee concerning the Desi District franchise, which means that any oral or written statements not set out in this
Agreement will not be binding. In deciding to enter into this Agreement, Franchisee is not relying on any statement, promise, claim, or representation not expressly set forth in this Agreement or in the Disclosure Document.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, a franchisee acknowledges several conditions when signing the Franchise Agreement. Specifically, the franchisee is not relying on any statements, promises, claims, or representations that are not expressly outlined in the agreement itself or within the Disclosure Document. This is a standard clause in franchise agreements designed to limit liability and ensure that all material terms are documented.
Desi District emphasizes that the Franchise Agreement constitutes the entire agreement between the franchisee and the company. This means any prior oral or written statements not included in the agreement are non-binding. The franchisee is expected to understand all information within Desi District's Disclosure Document and acknowledges that their success depends largely on their own skills, abilities, and efforts, as well as external factors.
Furthermore, the franchisee acknowledges that no one acting on Desi District's behalf has made any statements or promises regarding costs, profits, earnings, or potential revenue that contradict the information provided in the Disclosure Document. This includes assurances related to advertising, marketing, training, support, or any other assistance. This provision aims to prevent franchisees from claiming reliance on undocumented promises or projections made during the sales process.
This clause protects Desi District from potential legal disputes arising from misunderstandings or undocumented claims. It also reinforces the importance of the Franchise Disclosure Document as the primary source of information for prospective franchisees, encouraging them to carefully review and understand its contents before entering into the agreement.