When is the initial franchise fee due for a Desi District franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made | |
|---|---|---|---|---|---|
| Initial franchise fee (see | $30,000 - | $30,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Note 1) |
Notes
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- The Franchise Fee is due and payable at the time of executing the Franchise Agreement. Your lease security deposit and utility deposits will usually be refundable unless you owe money to the landlord or utility provider. None of the other expenditures in this table will be refundable. Neither we nor any affiliate finances any part of your initial investment. Each of these investment ranges varies depending on the type of franchise model you invest in. The Eatery model is a smaller footprint and operates as only a restaurant business. The Eatery and Market Model is a combination of restaurant and grocery business and requires a larger footprint and as a result more of an investment to open. In this Item 7, the lower end of the investment range generally accounts for the Eatery model and the higher end of the range of investment accounts for the Eatery and Market model.
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- This estimate assumes you sign a Multi-Unit Development Agreement for three to five franchises. The franchise fee for your first unit is counted in the "Estimated Initial Investment – Franchise Agreement" table. Your initial franchise fees are reduced to $30,000 for the second and each additional franchise. You will pay all franchise fees upon signing the MUDA.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the initial franchise fee, ranging from $30,000 to $30,000, is due upon signing the franchise agreement. This fee is payable via check or wire transfer directly to Desi District. Note 1 in Item 7 further clarifies that the Franchise Fee is due and payable at the time of executing the Franchise Agreement.
For franchisees considering a Multi-Unit Development Agreement (MUDA), the terms differ slightly. The franchise fee for the first unit is included in the "Estimated Initial Investment – Franchise Agreement" table. However, for the second and each additional franchise under the MUDA, the initial franchise fee is reduced to $30,000. These fees for additional franchises are paid upon signing the MUDA.
Prospective franchisees should be aware that the initial franchise fee is non-refundable. This is a standard practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise, including training, site selection assistance, and brand development. Franchisees should carefully review the Franchise Agreement and MUDA to fully understand the payment terms and obligations before signing.