Does the Desi District franchise agreement prohibit Desi District from operating or franchising a business under a different trademark that sells similar goods or services to those offered by Desi District franchisees?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Neither we nor any of our affiliates operates, franchises, or has plans to operate or franchise a business under a different trademark selling goods or services similar to those you will offer. However, the franchise agreement does not prohibit us from doing so.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the franchise agreement does not prohibit Desi District from operating or franchising a business under a different trademark that sells goods or services similar to those offered by Desi District franchisees.
Specifically, Desi District retains the right to operate and license others to operate businesses anywhere that do not operate under the Desi District brand name. Additionally, there are no restrictions on Desi District from soliciting or accepting orders from consumers inside a franchisee's territory, and Desi District reserves the right to use other channels of distribution, such as the internet, using different trademarks from the ones franchisees use under their franchise agreement.
This means that while franchisees are granted an exclusive territory where Desi District will not establish another Desi District outlet, Desi District can still operate or franchise other businesses selling similar goods or services under different trademarks, even within a franchisee's territory. This could create competition for franchisees from businesses affiliated with Desi District but operating under a different brand.