Is the Desi District franchisee required to cooperate with Desi District Franchise Group's inspectors?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.2 Inspections. Desi District Franchise Group may enter the premises of the Business from time to time during normal business hours and conduct an inspection. Franchisee shall cooperate with Desi District Franchise Group's inspectors. The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials. Desi District Franchise Group may videotape and/or take photographs of the inspection and the Business. Desi District Franchise Group may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement. Without limiting Desi District Franchise Group's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection. If Desi District Franchise Group conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or noncompliance with any System Standard by Franchisee (including following up a previous failed inspection), then Desi District Franchise Group may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees are required to cooperate with the franchisor's inspectors. Specifically, Desi District Franchise Group may enter the premises during normal business hours to conduct inspections, and the franchisee must cooperate with these inspectors.
The inspection may include observing operations, conducting physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and even removing samples of products. Desi District is also allowed to videotape or take photographs during the inspection.
Furthermore, Desi District may set a minimum score requirement for inspections, and failure to meet this score can result in a default under the Franchise Agreement. Franchisees are expected to correct any deficiencies noted during an inspection as soon as reasonably practical. If an inspection is triggered by a governmental report, customer complaint, or the franchisee's noncompliance with System Standards, Desi District may charge the franchisee for all out-of-pocket expenses plus an inspection fee.