Does the Desi District Franchise Disclosure Document need to be registered in Texas?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
d settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitation period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
DESI DISTRICT FRANCHISE GROUP, LLC Agreed to by:
STATE EFFECTIVE DATES
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the states, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Texas is not listed among the states that require the FDD to be registered or filed with the state. However, the document does state that "Other states may require registration, filing, or exemption of a franchise under other laws, such as those that regulate the offer and sale of business opportunities or seller-assisted marketing plans."
This means that while Texas may not require registration specifically under franchise laws, it could potentially have requirements under other business regulations. It is important for prospective franchisees to be aware of this distinction and conduct thorough research into all applicable state laws.
Furthermore, the FDD includes a California Addendum that mentions Texas as a community property state where marital assets could be at risk if the franchise fails, highlighting the importance of understanding the legal and financial implications in Texas. Therefore, a prospective franchisee should consult with legal and financial advisors in Texas to ensure full compliance and to understand the potential risks involved in operating a Desi District franchise in that state.