Is a Desi District franchisee required to submit an initial investment report?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.3 Initial Investment Report. Within 120 days after opening for business, Franchisee shall submit to Desi District Franchise Group a report detailing Franchisee's investment costs to develop and open the Business, with costs allocated to the categories described in Item 7 of Desi District Franchise Group's Franchise Disclosure Document and with such other information as Desi District Franchise Group may request.
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 submit an initial investment report. Specifically, within 120 days after opening their business, a Desi District franchisee must provide a report to the franchisor. This report should detail the franchisee's costs incurred to develop and open the business.
The report must allocate costs to the categories outlined in Item 7 of the Desi District Franchise Disclosure Document. Item 7 typically covers the estimated initial investment, including expenses like the initial franchise fee, real estate, equipment, and initial marketing expenses.
In addition to categorizing costs as per Item 7, the franchisee must include any other information that Desi District may request. This allows Desi District to gather comprehensive data on the franchisee's initial financial outlay, which can be used for benchmarking, financial analysis, and potentially for updating future Item 7 estimates in the FDD.