During what hours can Desi District Franchise Group conduct inspections of the Business?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.2 Inspections. Desi District Franchise Group may enter the premises of the Business from time to time during normal business hours and conduct an inspection. Franchisee shall cooperate with Desi District Franchise Group's inspectors. The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials. Desi District Franchise Group may videotape and/or take photographs of the inspection and the Business. Desi District Franchise Group may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement. Without limiting Desi District Franchise Group's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection. If Desi District Franchise Group conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or noncompliance with any System Standard by Franchisee (including following up a previous failed inspection), then Desi District Franchise Group may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group has the right to inspect the premises of the franchised business. These inspections can occur "from time to time during normal business hours." The franchisee is obligated to cooperate with Desi District's inspectors during these visits.
The scope of these inspections is broad. Desi District can observe operations, conduct physical inventories, assess the physical condition of the premises, monitor sales activities, and even speak with employees and customers. They are also permitted to take product samples and record the inspection through video or photographs.
Desi District may also set a minimum score requirement for inspections. Failure to meet this minimum score can result in a default under the Franchise Agreement. Franchisees are expected to promptly correct any deficiencies identified during an inspection. If an inspection is triggered by a governmental report, customer complaint, or the franchisee's non-compliance with System Standards, Desi District may charge the franchisee for all out-of-pocket expenses and an inspection fee.