Does the Principal Executive of a Desi District franchise have to serve as a day-to-day general manager of the business?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
information on Attachment 1 changes (which is not a Transfer), Franchisee shall notify Desi District Franchise Group within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee. The Principal Executive does not have to serve as a day-today general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business. If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Desi District Franchise Group's reasonable approval.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the Principal Executive is not required to be the day-to-day general manager. However, the Principal Executive must be the person with primary responsibility for the business and have decision-making authority. They also must have at least a 10% ownership interest in the franchise.
Even if the Principal Executive is not the general manager, they must devote substantial time and attention to the Desi District business. If the Principal Executive's role changes due to death, incapacitation, transfer of interest, or any other reason, the franchisee must promptly designate a new Principal Executive, subject to Desi District's approval.
Furthermore, the Desi District franchise must at all times be under the on-site supervision of the Principal Executive or a general manager who has completed Desi District's training program. This ensures that even if the Principal Executive is not always on-site, a trained and qualified individual is always supervising the business operations.