Can a Desi District franchisee sell online, given the restriction that sales must be made at or from the premises?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.3 Products, Services, and Methods of Sale. Franchisee shall offer all products and services, and only those products and services, from time to time prescribed by Desi District Franchise Group in the Manual or otherwise in writing. Franchisee shall make sales only to retail customers, and only at the Location. Unless otherwise approved or required by Desi District Franchise Group, Franchisee shall not make sales by any other means, including without limitation by wholesale, by delivery, by mail order or over the internet, or at temporary or satellite locations. Franchisee shall provide all products and perform all services in a high-quality manner that meets or exceeds the customer's reasonable expectations and all applicable System Standards.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 43–44)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees are generally restricted from making sales through online channels unless specifically approved or required by Desi District. The FDD states that franchisees must make sales only to retail customers and only at the physical location of the business.
Specifically, the franchise agreement stipulates that unless Desi District approves or requires otherwise, franchisees cannot engage in sales through methods such as wholesale, delivery, mail order, over the internet, or at temporary locations. This indicates a clear preference for sales occurring directly at the brick-and-mortar location.
For a prospective franchisee, this means that operating an online sales platform would require explicit permission from Desi District. It is important to discuss the possibility of online sales with Desi District during the due diligence process to understand their openness to this sales channel and any conditions that may apply. This restriction ensures that Desi District maintains control over its brand and distribution channels, but it may limit a franchisee's ability to reach customers outside of their immediate geographic area.