What happens if Desi District Franchise Group does not exercise its right of first refusal?

According to Desi District's 2024 Franchise Disclosure Document, if Desi District Franchise Group chooses not to exercise its right of first refusal regarding a proposed transfer of the franchise, the franchisee is then permitted to proceed with the transfer. However, this ability to proceed is still subject to all other terms and conditions outlined in the franchise agreement related to transfers.

This means that even if Desi District waives its right to buy the franchise itself, the franchisee must still meet all other requirements for transferring the business to a third party. These requirements, as detailed elsewhere in the FDD, likely include ensuring the franchisee is not in default, that the proposed assignee meets Desi District's training requirements, that both parties sign a release, and that the business complies with all current system standards.

In practical terms, a franchisee looking to sell their Desi District location needs to be aware that the franchisor has the first option to purchase it. If Desi District declines, the franchisee isn't automatically free to transfer the franchise to just anyone; they must still adhere to all other stipulations in the franchise agreement. This ensures that any new owner meets Desi District's standards and qualifications.