How long does Desi District Franchise Group have to exercise its right of first refusal?

According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group has 30 days to exercise its right of first refusal. This right allows Desi District to purchase the assets of the franchise if the franchisee intends to transfer ownership, subject to certain exceptions.

To initiate the transfer process, the franchisee must provide Desi District Franchise Group with a copy of the terms and conditions of the proposed transfer. Following receipt of this information, Desi District has 30 days to notify the franchisee if it intends to purchase the assets under the same terms and conditions as the proposed transfer, with the option to substitute cash for other forms of payment.

If Desi District does not exercise its right of first refusal within the 30-day period, the franchisee is then permitted to proceed with the transfer, provided that all other terms and conditions outlined in the franchise agreement are met. This clause does not apply in certain situations, such as a transfer for convenience of ownership to a corporation or LLC, a transfer to a co-owner, or a transfer to a spouse, sibling, or child of an owner.

This right of first refusal is a common provision in franchise agreements, allowing the franchisor to maintain control over who enters their system and to protect the brand. Prospective franchisees should understand this clause, as it can impact their ability to sell or transfer their franchise to a third party.