If Desi District Franchise Group cures a default, can they take any action?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
mpliance 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.
- 11.3 Desi District Franchise Group's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Desi District Franchise Group may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Desi District Franchise Group for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
- 11.4 Right to Discontinue Supplies Upon Default. While Franchisee is in default or breach of this Agreement, Desi District Franchise Group may (i) require that Franchisee pay cash on delivery for products or services supplied by Desi District Franchise Group, (ii) stop selling or providing any products and services to Franchisee, and/or (iii) request any third-party vendors to not sell or provide products or services to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if a franchisee breaches or defaults under any provision of the agreement, Desi District has the option, but not the obligation, to take action to cure the default on behalf of the franchisee without incurring any liability.
Additionally, while a franchisee is in default or breach of the agreement, Desi District has specific rights. They may demand cash on delivery for products or services, stop providing products and services to the franchisee, and request that third-party vendors do the same.
Desi District taking such actions will not be considered a breach or constructive termination of the agreement, nor will it relieve the franchisee of their obligations under the agreement. These rights are in addition to any other remedies available to Desi District.