If requested by Desi District Franchise Group, what must a Desi District franchisee do with the proposed lease?

According to Desi District's 2024 Franchise Disclosure Document, if the Desi District Franchise Group requests, a franchisee must submit the proposed lease to the franchisor for written approval. The lease term, including any renewal terms, must be no less than the term of the Franchise Agreement. Additionally, the franchisee must use commercially reasonable efforts to get the landlord to sign a rider to the lease in the form required by Desi District Franchise Group. This ensures that Desi District has some control over the lease terms and conditions.

This requirement is fairly standard in franchising, as it allows Desi District to protect its brand and ensure the location remains suitable for the duration of the franchise agreement. By requiring a lease term that matches or exceeds the franchise agreement, Desi District minimizes the risk of a franchisee losing their location before the agreement expires. The rider to the lease provides further protection, potentially outlining specific rights or conditions that benefit Desi District.

It is important for prospective Desi District franchisees to understand these lease requirements and factor them into their site selection and negotiation process. Franchisees should be prepared to share the proposed lease with Desi District and potentially negotiate with the landlord to include the required rider. Failure to comply with these requirements could potentially lead to issues with the franchise agreement or the ability to operate the Desi District business at the chosen location.