How often can Desi District Franchise Group require a remodel?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Desi District Franchise Group's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees may be required to remodel their location to meet Desi District's standards. However, there are limitations to how often Desi District can mandate these remodels.
The FDD states that Desi District will not require a remodel during the first two or last two years of the franchise term, with the exception of remodels required as a condition for renewal or transfer of the franchise agreement. Furthermore, Desi District cannot require a remodel more than once every five years, calculated from the completion date of the previous remodel.
This policy provides some predictability for franchisees regarding capital expenditures on remodels. Franchisees can anticipate that they will likely need to undertake a remodel at least once during their initial 10-year term, and potentially more often if they choose to renew their agreement for additional terms. It is important for prospective franchisees to factor in the potential costs of remodeling when evaluating the financial feasibility of a Desi District franchise.