For a Desi District Multi-Unit Development Agreement, how can the additional initial franchise fees be paid?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| First franchise (see table above) | $1,012,333 - $2,503,000 | Varies | Varies | Varies |
| Additional initial franchise fees (see Note 17) | $30,000 - $120,000 | Check or wire transfer | Upon signing the MUDA | Us |
| Business planning and miscellaneous expenses | $1,000 - $5,000 | Check | As incurred | Vendors and suppliers |
| Total | $1,043,333 - $2,628,000 | This is the total estimated initial investment to enter into a Multi-Unit Development Agreement for the right to own a tot |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if you sign a Multi-Unit Development Agreement (MUDA), the initial franchise fee is reduced to $30,000 for the second and each additional franchise. The total amount of additional initial franchise fees ranges from $30,000 to $120,000. These fees must be paid upon signing the MUDA.
Specifically, the FDD states that the additional initial franchise fees can be paid via check or wire transfer. This provides franchisees with a couple of standard payment options when entering into a multi-unit agreement with Desi District.
Understanding the payment methods and due dates for these fees is crucial for prospective franchisees to manage their initial investment and ensure they meet the financial obligations outlined in the Multi-Unit Development Agreement.