For a Desi District franchise, is the specific location always known when signing the franchise agreement?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
any direct or indirect ownership interest in the Business, or (iv) control of the Business.
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. Desi District Franchise Group grants to Franchisee the right to operate a Desi District business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Desi District business at the Location for the entire term of this Agreement.
- 2.2 Protected Territory. Desi District Franchise Group shall not establish, nor license the establishment of, another business within the Territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Desi District business.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the specific location for a franchise is not always known when signing the franchise agreement. The Franchise Agreement states that if no location is specified on the Summary Page when the agreement is signed, the parties will determine the location later, according to Section 6.1 of the agreement.
This means a prospective Desi District franchisee may sign the agreement before a site has been selected. In this case, the franchisee should understand the process and criteria Desi District uses for site selection, as described in Item 12. The franchisee should also be aware that Desi District provides its criteria for locations and will advise the franchisee regarding potential locations they submit.
It is important to note that Desi District's advice or acceptance of a site does not guarantee the success of the business, and Desi District has no liability regarding the location. The franchisee is responsible for constructing or remodeling the location according to Desi District's System Standards and must obtain approval for their plans before starting any work. Franchisees should carefully consider these factors and seek professional advice when evaluating potential locations.