Is Desi District obligated to assist in negotiating the purchase or lease of a site?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District is not obligated to assist franchisees in negotiating the purchase or lease of a site. However, Desi District will review and advise franchisees regarding potential locations that they submit. If a franchisee signs a Multi-Unit Development Agreement, Desi District will approve the location of future sites and territories for those sites, applying their then-current standards for sites and territories.
Desi District does not select the site for the franchisee, but the site is subject to their approval. To get approval, franchisees must provide all required information and documents about the site. Desi District will consider factors such as general location, neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms when approving sites.
The time limit for Desi District to approve or disapprove a proposed site is 30 days after the franchisee submits all required documents and information. If Desi District and the franchisee cannot agree on a site, the franchisee will be unable to meet their obligation to develop and open the franchise by the deadline stated in the franchise agreement, potentially leading to default and termination of the franchise agreement, unless an extension is agreed upon. Desi District is also not obligated to assist franchisees in conforming the premises of their site to local ordinances and building codes or obtaining required permits, making this the franchisee's responsibility.