Who owns the 'Innovations' related to the business developed by a Desi District franchisee?

According to Desi District's 2024 Franchise Disclosure Document, any innovations conceived or developed by a franchisee, their employees, agents, or contractors related to the Desi District business automatically become the property of Desi District Franchise Group. These innovations encompass all ideas, plans, improvements, concepts, methods, and techniques pertaining to the business.

This means that if a franchisee develops a new method for food preparation, a more efficient service technique, or any other improvement related to the Desi District business, they are obligated to disclose it to Desi District Franchise Group. Desi District Franchise Group then has the right to use and incorporate these innovations into the broader Desi District system without providing any compensation to the franchisee.

The franchisee is also required to execute any documents that Desi District Franchise Group deems necessary to formally establish their ownership of these innovations. This clause ensures that Desi District maintains control over any advancements or improvements to their system, allowing them to standardize and implement beneficial changes across all franchise locations, but at the expense of the franchisee's ownership.