How do Desi District franchisees pay for third-party vendors?

Question

Accepted Answer

| Type of Fee                                 | Amount                                                                                        | Due Date                       | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------------------------------------------|-----------------------------------------------------------------------------------------------|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Weekly, on Tuesday | We have the right to establish local or regional advertising cooperatives. The maximum contribution that a co-op may require is 5% of gross sales. Any location owned by us or any affiliate will have the same voting rights as our franchisees. Dues will be imposed by a majority vote and will not be less than 1% of gross sales. If any location owned by us or any affiliates have a majority vote, the maximum fees imposed will not exceed 3% of gross sales. |
| Local Marketing/Required Spending | up to 2% of your gross sales | Monthly | You may only use promotional materials you have purchased from us or that we have provided to you. |
| Replacement / Additional Training fee | Currently, \$350 per day | Prior to attending training | If you send a manager or other employee to our training program after you open, we will charge our then-current training fee. |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. | Varies | We have the right to require franchisees to use third-party vendors and suppliers that we designate. Examples can include computer support vendors, mystery shopping, and customer feedback systems. The vendors and suppliers may bill franchisees directly, or we have the right to collect payment for these vendors together with a reasonable markup or charge for administering the payment program. |

Source: Item 6 — OTHER FEES (FDD pages 16–20)

How do Desi District franchisees pay for third-party vendors?

Answer from 2024 FDD Document

What This Means (2024 FDD)

Type of Fee	Amount	Due Date	Remarks
Market Cooperative Contribution	As determined by co-op. Currently, none.	Weekly, on Tuesday	We have the right to establish local or regional advertising cooperatives. The maximum contribution that a co-op may require is 5% of gross sales. Any location owned by us or any affiliate will have the same voting rights as our franchisees. Dues will be imposed by a majority vote and will not be less than 1% of gross sales. If any location owned by us or any affiliates have a majority vote, the maximum fees imposed will not exceed 3% of gross sales.
Local Marketing/Required Spending	up to 2% of your gross sales	Monthly	You may only use promotional materials you have purchased from us or that we have provided to you.
Replacement / Additional Training fee	Currently, $350 per day	Prior to attending training	If you send a manager or other employee to our training program after you open, we will charge our then-current training fee.
Third party vendors	Pass-through of costs, plus reasonable administrative charge. Currently, none.	Varies	We have the right to require franchisees to use third-party vendors and suppliers that we designate. Examples can include computer support vendors, mystery shopping, and customer feedback systems. The vendors and suppliers may bill franchisees directly, or we have the right to collect payment for these vendors together with a reasonable markup or charge for administering the payment program.