What happens if a Desi District franchisee refuses to participate in customer evaluation programs?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by Desi District Franchise Group for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping.
Desi District Franchise Group shall share with Franchisee the results of these programs, as they pertain to the Business.
Franchisee must meet or exceed any
minimum score requirements set by Desi District Franchise Group for such programs. Desi District Franchise Group may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees are required to participate in customer evaluation programs at their own expense. These programs are mandated by Desi District Franchise Group and are designed to obtain customer evaluations, review franchisee compliance with the system standards, and manage customer complaints. These programs may include customer feedback systems, customer survey programs, and mystery shopping.
Desi District will share the results of these programs with the franchisee, specifically as they pertain to the franchisee's business. Franchisees must meet or exceed any minimum score requirements set by Desi District for these programs, which may also include minimum scores franchisees must receive from the public on internet review sites like Yelp or Google.
The FDD excerpt does not explicitly state the consequences of a franchisee's refusal to participate in these required customer evaluation programs or failure to meet the minimum score requirements. However, non-compliance with the franchise agreement and system standards typically constitutes a breach of contract. Item 11.2 mentions that failing to meet or exceed the minimum score for inspections will be a default under the agreement.
Prospective franchisees should inquire with Desi District about the specific repercussions for not participating in the customer evaluation programs or for failing to achieve the minimum required scores. Understanding the potential penalties or corrective actions is crucial for assessing the risks and obligations associated with the franchise.