factual

What is the Desi District franchisee required to do to the location after termination or expiration?

Desi_District Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Desi District Franchise Group or any new franchisee as may be directed by Desi District Franchise Group, and Franchisee hereby irrevocably appoints Desi District Franchise Group, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing; and

  • (iv) cease doing business under any of the Marks.

  • 14.4 Remove Identification. Within 30 days after termination or expiration, Franchisee shall at its own expense "de-identify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Desi District business, to the reasonable satisfaction of Desi District Franchise Group.

Franchisee shall comply with any reasonable instructions and procedures of Desi District

Franchise Group for de-identification. If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, Desi District Franchise Group may enter the Location to remove the Marks and de-identify the Location. In this event, Desi District Franchise Group will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Desi District Franchise Group.

Source: Item 22 — CONTRACTS (FDD page 52)

What This Means (2024 FDD)

According to the 2024 Desi District Franchise Disclosure Document, after the franchise agreement terminates or expires, the franchisee is responsible for several actions regarding the location. Within 30 days of termination or expiration, the franchisee must "de-identify" the location at their own expense. This means removing all Desi District trademarks, signage, and trade dress to the reasonable satisfaction of Desi District.

Additionally, the franchisee must notify all relevant entities, including telephone, internet, email, electronic network, and directory services, about the termination or expiration. They must also authorize the transfer of any numbers, addresses, domain names, locators, directories, and listings associated with the Desi District marks to Desi District or a new franchisee, as directed by Desi District. The franchisee irrevocably appoints Desi District as their attorney-in-fact to execute these transfers.

If the franchisee fails to de-identify the location within the specified 30-day period, Desi District has the right to enter the location and remove the marks and de-identify the location themselves. In such cases, Desi District will not be held liable for trespass or any damages caused during the removal or alteration of assets. The franchisee must also cease doing business under any of the Desi District marks immediately upon termination or expiration of the franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.