factual

To whom is the initial franchise fee paid when opening a Desi District franchise?

Desi_District Franchise · 2024 FDD

Answer from 2024 FDD Document

ENT

EATERY ONLY

| 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) | | | | | | | Rent and Lease Security | $5,000 - | $30,000 | Check | Upon signing lease | Landlord | | Deposit (see Note 2) | | | | | | | Utilities (see Note 3) | $1,000 - | $5,000 | Check, debit, and/or credit | Upon ordering service | Utility providers | | Leasehold | $390,000 - | $520,000 | Check | As incurred or when billed | Contractors | | Improvements (see Note | | | | | | | 4) | | | | | | | Market Introduction | $5,000 - | $10,000 | Check, debit, and/or credit | As incurred or when billed | Vendors and suppliers | | Program (see Note 5) | | | | | | | Furniture, Fixtures, and Equipment (see Note 6) | $120,000 - | $240,000 | Check, debit, and/or credit | As incurred | Vendors and suppliers | | Computer Systems (see Note 7) | $7,000 - | $12,000 | Check, debit, and/or credit | As incurred | Vendors and suppliers | | Insurance (see Note 8) | $2,000 - | $8,000 | Check | Upon ordering | Insurance company | | Signage (see Note 9) | $8,000 - | $12,000 | Check, debit, and/or credit | Upon ordering | Vendor |

Type of expenditure Amount Method of payment When due To whom payment is to be made
Office Expenses (see $500 - $1,000 Check, debit, and/or credit As incurred Vendors
Note 10)
Inventory (see Note 11) $20,000 - $40,000 Check, debit, and/or credit Upon ordering Our Affiliate, Vendors
Licenses and Permits (see Note 12) $1,000 - $2,000 Check Upon application Government
Dues and Subscriptions (see Note 13) $200 - $500 Check, debit, and/or credit As incurred Vendors, trade organizat

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 is paid to "Us," meaning the franchisor. The initial franchise fee ranges from $30,000 to $30,000 and is due upon signing the franchise agreement. Payment can be made via check or wire transfer.

For franchisees entering into a Multi-Unit Development Agreement (MUDA), additional initial franchise fees, ranging from $30,000 to $120,000 or $22,500 to $90,000, are also paid to the franchisor ("Us") upon signing the MUDA. The amount varies depending on the specific agreement. This fee covers the right to open multiple Desi District locations.

It is important to note that the FDD specifies that neither Desi District nor any affiliate finances any part of the franchisee's initial investment. The franchise fee is non-refundable, so prospective franchisees should carefully consider their decision before signing the agreement and making payment.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.