When is payment due for Desi District inventory?
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 |
|---|---|---|---|---|
| Office Expenses (see | $500 - $1,000 | Check, debit, and/or credit | As incurred | Vendors |
| Note 10) | ||||
| Inventory (see Note 11) | $20,000 - $40,000 | Check, debit, and/or credit | Upon ordering | O |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, payment for inventory is due upon ordering. The estimated initial investment for inventory ranges from $20,000 to $40,000, and payment can be made via check, debit card, or credit card. The inventory will be purchased from Desi District's affiliate or other approved vendors.
For a prospective Desi District franchisee, this means that you will need to have the funds available at the time you place your inventory order. This upfront payment requirement can impact your cash flow, especially when starting the business. It is important to factor this into your financial planning and ensure you have sufficient capital to cover these costs.
The FDD notes that the total investment range for products and inventory will be based on the type of franchise model you invest in. For the Eatery model, $5,000 to $10,000 will be purchased through their affiliate, TAR Distributors, Inc. For the Eatery and Market model, $20,000 to $80,000 will be purchased through TAR Distributors, Inc. Therefore, the initial inventory investment could be significantly higher if you choose the Eatery and Market model.