Does Desi District know of any copyright infringement that could materially affect franchisees?

According to the 2024 FDD, Desi District states that it is not aware of any copyright infringement that could materially affect franchisees. However, Desi District does not have any registered copyrights, nor are there any pending copyright applications for their copyrighted materials.

Desi District's franchise agreement does not require them to take affirmative action when notified of copyright infringement. Desi District retains control over any copyright litigation. They are not required to participate in the defense of a franchisee or indemnify a franchisee for expenses or damages in a proceeding involving a copyright licensed to the franchisee. Desi District may require a franchisee to modify or discontinue using the subject matter covered by any of their copyrights, at the franchisee's expense.

While Desi District asserts copyright protection over its original works, including the Brand Standards Manual and other materials, franchisees bear the risk of potential copyright infringement claims. The franchisor is not obligated to defend or indemnify franchisees in such cases, which could lead to unexpected costs and operational disruptions for the franchisee. This arrangement is not uncommon in franchising, but prospective franchisees should carefully consider the potential financial and legal implications.