What happens if Desi District and the franchisee cannot agree on a site?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1). If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if the franchisee and Desi District cannot agree on a site for the franchise location, the franchisee will be unable to fulfill their obligation to develop and open the franchise by the deadline stated in the franchise agreement.
Unless Desi District agrees to extend the deadline, the franchisee will be in default of the franchise agreement. This default gives Desi District the right to terminate the franchise agreement.
This stipulation highlights the importance of site selection in the franchising process. Franchisees should carefully consider potential locations and ensure they meet Desi District's approval criteria, which include factors like general location, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms. Franchisees should also be prepared to potentially lose their franchise if a mutually agreeable site cannot be found and the franchisor does not grant an extension.