When are the franchise fees paid when signing a Multi-Unit Development Agreement (MUDA) with Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
i-Unit Development
If you and we agree that you will develop multiple franchises, then you will sign our Multi-Unit Development Agreement ("MUDA") in the form of Exhibit C to this disclosure document. Your franchise fees will be reduced to $22,500 for the Eatery only model and $30,000 each
additional franchise after the first franchise for the Eatery & Market model. You will pay all franchise fees upon signing the MUDA. They are uniform
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if a franchisee and Desi District agree that the franchisee will develop multiple franchises, they will sign a Multi-Unit Development Agreement (MUDA). The franchise fees will be reduced to $22,500 for the Eatery only model and $30,000 each additional franchise after the first franchise for the Eatery & Market model.
The FDD states that the franchisee must pay all franchise fees upon signing the MUDA. These fees are uniform and not refundable. This means that the franchisee needs to have the full amount of the franchise fees available at the time of signing the agreement to develop multiple Desi District locations.
This is a standard practice in multi-unit franchising, as it secures the developer's commitment to the expansion plan. Prospective franchisees should carefully consider their financial capacity to meet this upfront obligation before entering into a MUDA with Desi District.