Is a Desi District franchisee required to participate in customer loyalty programs designated by Desi District Franchise Group?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Desi District Franchise Group, in the manner specified by Desi District Franchise Group in the Manual or otherwise in writing.
Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Desi District business.
Franchisee shall comply with all procedures and specifications of Desi District Franchise Group related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
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 participate in customer loyalty programs. Specifically, the FDD states that at the franchisee's own expense, they must participate in any customer loyalty programs designated by Desi District Franchise Group. The manner of participation will be specified by Desi District Franchise Group in the Manual or otherwise in writing.
This means that as a Desi District franchisee, you don't have a choice about whether or not to participate in loyalty programs that the franchisor implements. You must comply with the loyalty programs that Desi District establishes.
Furthermore, the franchisee is responsible for selling or issuing gift cards, certificates, or other pre-paid systems as part of these programs. The franchisee must also honor all valid gift cards and other pre-paid systems, even those issued by other Desi District businesses. This ensures consistency across the franchise system but also means franchisees must accept financial responsibility for obligations created by others in the system.