Does Desi District Franchise Group act as a fiduciary of the franchisee?

According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group is not a fiduciary of the franchisee. The agreement specifies that the parties are independent contractors, clarifying that neither party is an agent, partner, joint venturer, or employee of the other. This distinction is important as it defines the legal and financial responsibilities of each party involved in the franchise relationship.

The franchise agreement states that Desi District does not control or have the right to control the franchisee or its business. Any specifications and standards outlined in the agreement and the System Standards are designed to protect Desi District's interest in the System and the Marks, as well as the goodwill established in them. These standards are not intended to establish control over the franchisee's business operations.

Furthermore, the agreement explicitly states that Desi District has no liability for the franchisee's obligations to any third party. This reinforces the independent nature of the relationship, ensuring that the franchisee is responsible for their own debts, contracts, and legal obligations. Prospective franchisees should understand this aspect of the agreement, as it means they will not have the legal protections or financial safety net that might exist in a fiduciary relationship.