Does the Desi District FDD include a Rider to Lease Agreement as an exhibit?

Yes, the 2024 Desi District Franchise Disclosure Document includes a Rider to Lease Agreement as an exhibit. Specifically, it is identified as Exhibit D. This indicates that Desi District provides a template or standard form that modifies or supplements the lease agreement between the franchisee (as the tenant) and the landlord.

The Rider to Lease Agreement likely contains provisions that protect Desi District's interests in the event of franchisee default or termination of the franchise agreement. For example, it might include clauses that allow Desi District to receive notice of default, an opportunity to cure the default, or the option to take over the lease. These types of provisions are common in franchise systems to ensure business continuity and maintain brand standards at the location.

Prospective Desi District franchisees should carefully review Exhibit D with their legal counsel to understand their rights and obligations under the lease, as well as the franchisor's rights. Understanding the relationship between the lease, the rider, and the franchise agreement is crucial for managing risk and ensuring a smooth business operation. Franchisees should pay close attention to the conditions under which Desi District can step in and assume the lease, as this could have significant financial implications.