How does Desi District Franchise Group define an 'Approved Vendor'?

According to Desi District's 2024 Franchise Disclosure Document, an 'Approved Vendor' is defined as a supplier, vendor, or distributor of inputs that has been approved by Desi District Franchise Group. This means that franchisees are required to source certain goods, services, supplies, and equipment from vendors that Desi District has already vetted and given the green light.

This requirement ensures that all Desi District locations maintain consistent quality and standards. While franchisees may prefer to use their own suppliers, they must adhere to the franchisor's approved list. However, franchisees do have the option to request approval for an alternate vendor if they desire to purchase a particular input from a vendor not already on the approved list.

If a franchisee wants to use a vendor not on the approved list, they must submit a written request to Desi District for approval. Desi District may require information, specifications, and samples from the proposed vendor. The franchisor may also evaluate the vendor's capacity, quality, financial stability, reputation, and reliability, and may conduct inspections, product testing, and performance reviews. Desi District will provide written notification of approval or disapproval within 30 days of receiving the franchisee's request.

Desi District also retains the right to negotiate prices and terms with vendors on behalf of the entire franchise system and may receive rebates or other consideration from these vendors based on franchisee purchases. Desi District is not liable for any claims or losses related to products or services provided by Approved Vendors or Required Vendors, including defects, delays, or unavailability.