In New York, has Desi District filed for bankruptcy in the past 10 years?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- The following is added to the end of Item 4:
Neither the franchisor, its affiliate, its predecessor, officers, or general partner during the 10-year period immediately before the date of the offering circular: (a) filed as debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a discharge of its debts under the U.S. Bankruptcy Code during or within 1 year after that officer or general partner of the franchisor held this position in the company or partnership.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Item 23 includes an addition to Item 4 which addresses bankruptcy filings. It states that neither Desi District, its affiliates, predecessors, officers, nor general partners have filed as a debtor or had a petition filed against them under the U.S. Bankruptcy Code in the 10 years before the offering circular date. They also have not obtained a discharge of debts under the bankruptcy code during that period. This extends to principal officers of companies or general partners in partnerships that may have filed for bankruptcy or obtained a discharge of debts within one year of their time with Desi District. This statement applies to all states, including New York.
This information is crucial for prospective franchisees in New York as it provides assurance that Desi District has maintained financial stability and has not been involved in bankruptcy proceedings recently. Knowing this can help franchisees assess the risk associated with investing in a Desi District franchise. The absence of bankruptcy filings suggests a more stable and reliable franchisor.
It is important to note that this disclosure only covers the past 10 years. While it offers some comfort, franchisees should still conduct their own due diligence to assess the long-term financial health and stability of Desi District. This could include reviewing the company's financial statements, seeking advice from financial advisors, and speaking with existing franchisees to gather insights into their experiences with the franchisor.