During which periods of the franchise term is a Desi District remodel not required?
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, there are specific periods during the franchise term when a remodel is not required. Desi District limits its right to require a remodel, stating that a remodel will not be required during the first two or the last two years of the franchise term. However, a remodel may be required as a condition for renewing the franchise term or if the franchise is transferred to a new owner.
Furthermore, Desi District will not require a remodel more than once every five years, calculated from the date the franchisee completed the previous remodel. This provides some predictability for franchisees in terms of capital expenditure planning. Franchisees are required to complete any remodel within the timeframe specified by Desi District.
Prior to starting any required remodel, Desi District may require the franchisee to submit plans for approval. This ensures that the remodel meets Desi District's standards and maintains uniformity across all franchise locations. This policy helps franchisees manage costs and timelines associated with maintaining and updating their Desi District location.