Does Desi District own the premises of my franchise location?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Before you open your business:
- A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.4). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page). We do not select your site. Your site is subject to our approval. To obtain our approval, you must provide all information and documents about the site that we require.
- (iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
- (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1). If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees will generally own or lease their own business premises. Desi District will advise franchisees regarding potential locations they submit. However, Desi District is not obligated to assist in locating a site or negotiating the purchase or lease.
If the site is not already known and approved when the franchise agreement is signed, the agreement will specify the area in which the franchisee must select a site. The site is subject to Desi District's approval, and the franchisee must provide all required information and documents about the site to obtain this approval.
Desi District considers factors such as general location, competition, demographics, traffic patterns, parking, size, building characteristics, and lease terms when approving sites. The franchisor has 30 days to approve or disapprove a proposed site after receiving all required documents. If the franchisee and Desi District cannot agree on a site, and no extension is granted, the franchisee may be in default of the franchise agreement, potentially leading to termination.