What is the legal structure of Desi District Franchise Group, LLC?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Delaware Limited Liability (the "Agreement"), between Desi District Franchise Group, LLC, a ("Desi District Franchise Group") and Company , a ("Franchisee"). 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement. The "Maryland Franchise Law" means Disclosure Law, Business Regulation Article, §14-206, Annotated Code of Maryland. the Maryland Franchise Registration and 2. Releases, Estoppels and Waivers of Liability. franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Law. All representations requiring prospective 3. Statute of Limitations. Any provision of the Agreement limitations for causes of action shall not apply to causes of action under the Maryland Franchise Law, Business Regulation Article, §14-227, Annotated Code of Maryland. Franchisee must bring an action under such law within three years after the grant of the franchise. which provides for a period of 4. Jurisdiction. Franchisee does not waive its right to file a lawsuit alleging a cause of action Maryland. arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of 5. Effective Date. Agreed to by: This Rider is effective as of the Effective Date. FRANCHISEE: LLC DESI DISTRICT FRANCHISE GROUP,
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, Desi District Franchise Group, LLC is a Delaware Limited Liability Company. This is mentioned in the Maryland Rider to Franchise Agreement and Multi-Unit Development Agreement, which states that the agreement is between Desi District Franchise Group, LLC, a Delaware Limited Liability.
This legal structure means that Desi District Franchise Group, LLC is registered in Delaware and operates under the laws governing LLCs in that state. As a limited liability company, the personal assets of the owners (members) are typically protected from business debts and liabilities. This structure is common for franchisors as it provides a balance between the simplicity of a partnership and the liability protection of a corporation.
For a prospective Desi District franchisee, understanding the franchisor's legal structure is important for assessing the stability and potential liability associated with the franchise. Knowing that Desi District is a Delaware LLC provides a basic level of assurance that the franchisor has taken steps to protect its owners' personal assets, which can be a sign of a more stable and responsible organization. Franchisees should consult with their own legal advisors to fully understand the implications of the franchisor's legal structure and how it might affect their investment.