What is the estimated cost to purchase the required POS systems for a Desi District Eatery only?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Point of Sale and Computer Systems
We require you to buy (or lease) and use a point-of-sale system and computer system as follows:
TOAST –Eatery POS
- Software license
- POS Device
- Kitchen Display Screens
- Handheld Devices
- Kiosks
Block POS -Market POS
- Software license
- POS Device / Display / Server
The system will include our currently required POS/CRM system, credit card processing system, and accounting platform, such as QuickBooks. These systems will generate or store data such as inventory/product details, sales transactions, client, employee, scheduling, reporting, and accounting information.
We estimate that these systems will cost between $7,000 and $12,000 for the Eatery only or $10,000 to $15,000 to purchase for the Eatery & Market.
We are not obligated to provide any ongoing maintenance, repairs, upgrades, or updates. We do require you enter into such contract with a third party for the above platforms/system.
You must upgrade or update any system when we determine. There is no contractual limit on the frequency or cost of this obligation.
We estimate that the annual cost of any optional or required maintenance, updating, upgrading, or support contracts will be $21,600 to $36,000 which includes the software subscription fees.
You must give us independent access to the information that will be generated or stored in these systems. The information that we may access will include sales, customer data, and reports. There is no contractual limitation on our right to access the information.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the estimated cost to purchase the required Point of Sale (POS) systems for an Eatery only ranges from $7,000 to $12,000. This includes the software license, POS device, kitchen display screens, handheld devices, and kiosks necessary for operating the Eatery.
Desi District franchisees are required to buy (or lease) and use a specific point-of-sale system and computer system. The required system includes a POS/CRM system, credit card processing system, and accounting platform like QuickBooks. These systems are essential for managing various aspects of the business, such as inventory, sales transactions, client data, employee scheduling, reporting, and accounting information.
It is important to note that Desi District does not provide ongoing maintenance, repairs, upgrades, or updates for these systems. Franchisees are required to enter into a separate contract with a third party for these services. The annual cost for maintenance, updates, upgrades, and support contracts, including software subscription fees, is estimated to be between $21,600 and $36,000. Franchisees must also grant Desi District independent access to the data generated and stored within these systems, including sales, customer data, and reports, without any contractual limitations on the franchisor's access rights. Furthermore, Desi District retains the right to mandate system upgrades or updates at any time, with no contractual limit on the frequency or cost of these obligations for the franchisee.