For a Desi District franchise, is the franchisee restricted to making sales only to retail customers?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.3 Products, Services, and Methods of Sale. Franchisee shall offer all products and services, and only those products and services, from time to time prescribed by Desi District Franchise Group in the Manual or otherwise in writing. Franchisee shall make sales only to retail customers, and only at the Location. Unless otherwise approved or required by Desi District Franchise Group, Franchisee shall not make sales by any other means, including without limitation by wholesale, by delivery, by mail order or over the internet, or at temporary or satellite locations. Franchisee shall provide all products and perform all services in a high-quality manner that meets or exceeds the customer's reasonable expectations and all applicable System Standards.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees are generally restricted to making sales only to retail customers at the approved location. Specifically, franchisees must offer only the products and services prescribed by Desi District.
The FDD states that unless otherwise approved or required by Desi District, franchisees cannot make sales through wholesale, delivery, mail order, over the internet, or at temporary or satellite locations. This means a franchisee's primary business model is focused on direct sales to individual customers at the physical store location.
This restriction ensures that Desi District maintains control over its brand image and customer experience. However, it also limits the franchisee's ability to explore alternative sales channels without explicit permission from Desi District. A prospective franchisee should discuss potential exceptions or opportunities for alternative sales methods with Desi District during their due diligence.