What is the estimated range for rent and lease security deposit for a Desi District Eatery Only franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
ENT
EATERY ONLY
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made | |
|---|---|---|---|---|---|
| Initial franchise fee (see | $30,000 - | $30,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Note 1) | |||||
| Rent and Lease Security | $5,000 - | $30,000 | Check | Upon signing lease | Landlord |
| Deposit (see Note 2) | |||||
| Utilities (see Note 3) | $1,000 - | $5,000 | Check, debit, and/or credit | Upon ordering service | Utility providers |
| Leasehold | $390,000 - | $520,000 | Check | As incurred or when billed | Contractors |
| Improvements (see Note |
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 rent and lease security deposits for an Eatery Only franchise ranges from $5,000 to $30,000. This payment is typically made via check to the landlord upon signing the lease.
Note 2 in Item 7 of the FDD states that this estimate assumes payment of one month's rent plus a security deposit before opening. Desi District recommends negotiating a "free rent" period to cover the time needed to build out the business. The FDD also indicates that these estimates are based on the franchisee renting the location, and that purchasing real estate instead of renting would significantly alter these costs.
Prospective franchisees should carefully consider these figures and factor in potential variations based on their specific location and lease terms. It is important to discuss these estimates with the franchisor and consult with experienced real estate professionals to negotiate favorable lease terms and understand the full financial implications of securing a location for a Desi District franchise.