How many Desi District franchises does the estimate assume you sign a Multi-Unit Development Agreement for?

According to Desi District's 2024 Franchise Disclosure Document, the estimated initial investment assumes a Multi-Unit Development Agreement (MUDA) is signed for three to five franchises. The franchise fee for the first unit is included in the "Estimated Initial Investment – Franchise Agreement" table. For the second and each additional franchise, the initial franchise fees are reduced to $30,000. All franchise fees are payable upon signing the MUDA.

This means that a prospective franchisee considering a multi-unit development with Desi District should plan their initial investment with the understanding that they are committing to develop between three and five locations. The initial franchise fee is higher for the first location, but subsequent locations have a reduced fee of $30,000 each. This structure incentivizes multi-unit development by lowering the barrier to entry for additional units.

It's important to note that all franchise fees for all units under the MUDA are due upon signing the agreement. This represents a significant upfront financial commitment. A potential franchisee should carefully consider their ability to secure suitable locations and manage the development of multiple units simultaneously before entering into such an agreement. This is a common practice in franchising, as it allows the franchisor to secure a commitment for future growth and expansion.