When is the Franchise Fee due and payable for a Desi District franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
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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 | | | | | | | 4) | | | | | | | Market Introduction | $5,000 - | $10,000 | Check, debit, and/or credit | As incurred or when billed | Vendors and suppliers | | Program (see Note 5) | | | | | | | Furniture, Fixtures, and Equipment (see Note 6) | $120,000 - | $240,000 | Check, debit, and/or credit | As incurred | Vendors and suppliers | | Computer Systems (see Note 7) | $7,000 - | $12,000 | Check, debit, and/or credit | As incurred | Vendors and suppliers | | Insurance (see Note 8) | $2,000 - | $8,000 | Check | Upon ordering | Insurance company | | Signage (see Note 9) | $8,000 - | $12,000 | Check, debit, and/or credit | Upon ordering | Vendor |
| Type of expenditure | Amount | Method of payment | When due
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 initial franchise fee, ranging from $30,000 to $30,000, is due upon signing the franchise agreement. The method of payment is check or wire transfer, and payment is to be made to Desi District. This fee grants the franchisee the right to operate a Desi District franchise.
For franchisees entering into a Multi-Unit Development Agreement (MUDA), which allows them to open multiple Desi District locations, additional initial franchise fees are also required. These fees range from $22,500 to $120,000 and are due upon signing the MUDA. Like the initial franchise fee for a single unit, these additional fees are payable to Desi District via check or wire transfer.
It is important to note that the franchise fee is generally non-refundable. Prospective Desi District franchisees should factor these payment terms into their financial planning and ensure they have the required funds available when signing the franchise agreement or MUDA. Understanding the payment schedule and non-refundable nature of the franchise fee is crucial for making an informed investment decision.