What happens if a Desi District franchisee loses possession of the Location?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
her materials provided by Desi District Franchise Group to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;
- (iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Desi District Franchise Group or any new franchisee as may be directed by Desi District Franchise Group, and Franchisee hereby irrevocably appoints Desi District Franchise Group, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing; and
- (iv) cease doing business under any of the Marks.
- 14.4 Remove Identification. Within 30 days after termination or expiration, Franchisee shall at its own expense "de-identify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Desi District business, to the reasonable satisfaction of Desi District Franchise Group. Franchisee shall comply with any reasonable instructions and procedures of Desi District
Franchise Group for de-identification. If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, Desi District Franchise Group may enter the Location to remove the Marks and de-identify the Location.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if a franchisee loses possession of their location, it constitutes a cause for termination of the franchise agreement.
Following the termination or expiration of the franchise agreement, the franchisee is required, within 30 days and at their own expense, to de-identify the location. This involves removing all Desi District marks, signage, and trade dress to the reasonable satisfaction of Desi District. Should the franchisee fail to do so within the specified timeframe, Desi District has the right to enter the location to remove the marks and de-identify the location without being held liable for trespass or required to compensate for any removed or altered assets or any damages caused during the process.
Furthermore, upon termination or expiration of the franchise agreement, the franchisee must notify all relevant entities, including telephone, internet, email, and directory services, about the termination of their right to use any numbers, addresses, domain names, or listings associated with Desi District's marks. They must also authorize the transfer of these assets to Desi District or a new franchisee as directed by Desi District. The franchisee also ceases doing business under any of the Marks.