What is the estimated range for Desi District inventory costs?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
age_20_Picture_0.jpeg)
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Office Expenses (see | $500 - $1,000 | Check, debit, and/or credit | As incurred | Vendors |
| Note 10) | ||||
| Inventory (see Note 11) | $20,000 - $40,000 | Check, debit, and/or credit | Upon ordering | Our Affiliate, Vendors |
| Licenses and Permits (see Note 12) | $1,000 - $2,000 | Check | Upon application | Government |
| Dues and Subscriptions (see Note 13) | $200 - $500 | Check, debit, and/or credit | As incurred | Vendors, trade organizations |
| Professional Fees | $1,500 - $4,000 | Check, debit, and/or credit | As incurred or when billed | Professional service firms |
| (lawyer, accountant, | ||||
| etc.) (see Note 14) | ||||
| Travel, lodging and | $3,000 - $6,000 | Cash, debit or credit | As incurred | Airlines, hotels, and restaurants |
| meals for initial training | ||||
| (see Note 15) | ||||
| Additional funds (for first 3 months) (see Note 16) | $75,000 - $100,000 | Varies | Varies | Employees, suppliers, utilities |
| Total | $669,200 - $1,020,500 | This is the total estimated initial investment to open and commence operating your initial location for the first three months (as described more fully in Chart A of this Item 7). See Note 3. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the estimated initial investment for inventory ranges from $20,000 to $40,000. These costs are paid upon ordering to either Desi District's affiliate or other approved vendors via check, debit, or credit.
However, the FDD also states that the total investment range for products and inventory will vary based on the franchise model chosen. For the Eatery model, franchisees can expect to purchase $5,000 to $10,000 of inventory through TAR Distributors, Inc., Desi District's affiliate. For the Eatery and Market model, this range increases to $20,000 to $80,000, also purchased through TAR Distributors, Inc.
Prospective franchisees should note the discrepancy between the initial investment table and the subsequent clarification regarding inventory costs based on the franchise model. It is important to clarify with Desi District which estimate is most accurate for their chosen franchise model and to understand the factors that could influence these costs, such as the size of the location, the volume of sales, and any specific inventory requirements.