What happens if a Desi District franchisee or owner is charged with a felony?

According to Desi District's 2024 Franchise Disclosure Document, if a franchisee or any owner is charged with, pleads guilty or no-contest to, or is convicted of a felony, it constitutes a breach of the franchise agreement. This gives Desi District Franchise Group grounds to terminate the agreement.

Termination of the franchise agreement means the franchisee's right to operate the Desi District business is revoked. Following termination, the franchisee must immediately pay all outstanding amounts owed to Desi District. The franchisee must also return all copies of the Manual, Confidential Information, and any other materials provided by Desi District, including items containing trademarks, copyrights, and proprietary information. All confidential and proprietary materials must be deleted from electronic devices.

This clause is fairly standard in franchise agreements, as a felony charge or conviction can significantly damage the reputation and brand image of Desi District. Franchisees should be aware that any legal issues of this nature involving themselves or their ownership team could lead to the loss of their franchise.