When are payments for Desi District licenses and permits due?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
age_20_Picture_0.jpeg)
| 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 | Our Affiliate, Vendors |
| Licenses and Permits (see Note 12) | $1,000 - $2,000 | Check | Upon application | Government |
| Dues and Subscriptions (see Note 13) | $200 - $500 | Check, debit, and/or credit | As incurred | Vendors, trade organizations |
| Professional Fees | $1,500 - $4,000 | Check, debit, and/or credit | As incurred or when billed | Professional service firms |
| (lawyer, accountant, | ||||
| etc.) (see Note 14) | ||||
| Travel, lodging and | $3,000 - $6,000 | Cash, debit or credit | As incurred | Airlines, hotels, and restaurants |
| meals for initial training | ||||
| (see Note 15) | ||||
| Additional funds (for first 3 months) (see Note 16) | $75,000 - $100,000 | Varies | Varies | Employees, suppliers, utilities |
| Total | $669,200 - $1,020,500 | This is the total estimated initial investment to open and commence operating your initial location for the first three months (as described more fully in Chart A of th |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–26)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, payments for licenses and permits, which range from $1,000 to $2,000, are due upon application. These payments must be made via check to the government.
This means that a prospective Desi District franchisee should budget for these costs and be prepared to pay them when they submit their license and permit applications. It is important to factor in the timing of these payments, as they are required upfront, which could impact the franchisee's initial cash flow.
Understanding the specific licenses and permits required and their associated costs is crucial for accurate financial planning. The franchisee should also confirm the accepted methods of payment with the relevant government agencies to ensure compliance and avoid any delays in the application process. This up-front payment requirement is typical for licenses and permits across many franchise systems.