How long does a Desi District franchisee have to reimburse Desi District Franchise Group for payments made on their behalf?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.6 Reimbursement. Desi District Franchise Group may (but is never obligated to) pay on Franchisee's behalf any amount that Franchisee owes to a supplier or other third party. If Desi District Franchise Group does so or intends to do so, Franchisee shall pay such amount plus a 10% administrative charge to Desi District Franchise Group within 15 days after invoice by Desi District Franchise Group accompanied by reasonable documentation.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if Desi District Franchise Group makes a payment to a supplier or other third party on behalf of a franchisee, the franchisee is required to reimburse Desi District within 15 days of receiving an invoice. This invoice will include reasonable documentation of the payment made by Desi District Franchise Group.
In addition to the original amount paid on their behalf, the franchisee must also pay a 10% administrative charge to Desi District Franchise Group. This charge covers the administrative costs incurred by Desi District Franchise Group for making the payment.
This reimbursement policy is important for prospective franchisees to understand, as it outlines the financial responsibility they have when Desi District Franchise Group intervenes to settle their debts with suppliers or other third parties. Failing to reimburse Desi District Franchise Group within the specified timeframe could potentially lead to further action or penalties as outlined in the franchise agreement.