What is the initial franchise fee for a Desi District Eatery only franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Fee
When you sign your franchise agreement, you must pay us $30,000 as the initial franchise fee for the Eatery only, and $40,000 as the initial franchise fee for the Eatery & Market. This fee is uniform and is not refundable.
Multi-Unit Development
If you and we agree that you will develop multiple franchises, then you will sign our Multi-Unit Development Agreement ("MUDA") in the form of Exhibit C to this disclosure document. Your franchise fees will be reduced to $22,500 for the Eatery only model and $30,000 each
additional franchise after the first franchise for the Eatery & Market model. You will pay all franchise fees upon signing the MUDA. They are uniform and not refundable.
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the initial franchise fee for an Eatery only franchise is $30,000. This fee is payable when the franchise agreement is signed. The FDD specifies that this initial franchise fee is uniform and non-refundable. This means that all franchisees of the Eatery only model pay the same initial fee, and under no circumstances will this fee be returned to the franchisee.
For franchisees interested in developing multiple Desi District locations, a Multi-Unit Development Agreement (MUDA) is available. Under the MUDA, the franchise fee is reduced to $22,500 for the Eatery only model for each additional franchise after the first. All franchise fees under the MUDA are paid upon signing the agreement and are also non-refundable.
In addition to the initial franchise fee, new Desi District franchisees will need to purchase products and food inventory from Desi District's affiliate, TAR Distributors, Inc. The total investment for these items ranges from $5,000 to $10,000 for the Eatery only model. This cost is separate from the initial franchise fee and is detailed further in Item 7 of the FDD under Inventory.