What is the minimum term required for the lease of a Desi District franchise location?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
ot a representation or warranty that the Business will be successful, and Desi District Franchise Group has no liability to Franchisee with respect to the location of the Business.**
- 6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by Desi District Franchise Group, Franchisee must submit the proposed lease to Desi District Franchise Group for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by Desi District
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the term of the lease for a franchise location, including any renewal terms, must be no less than the term of the Franchise Agreement. According to section 3.1, the initial term of the Desi District Franchise Agreement is 10 years.
This means a prospective Desi District franchisee must secure a lease with a term of at least 10 years, inclusive of any renewal options. This requirement ensures that the franchisee has control of the location for the duration of the franchise agreement.
The franchisee must submit the proposed lease to Desi District for written approval if requested. Additionally, the franchisee must use commercially reasonable efforts to obtain the landlord's signature on a rider to the lease in the form required by Desi District.