Does Desi District provide assurance that franchisees will achieve the same sales or earnings as some existing outlets?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5. Some outlets have sold and earned this amount. Your individual results may differ. There is no assurance that you'll sell or earn as much.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 48–49)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the franchisor does not provide assurance that franchisees will achieve the same sales or earnings as existing outlets. Item 19 of the FDD includes financial performance representations based on company-owned outlets from January 1, 2023, through December 31, 2023. The FDD explicitly states that individual results may vary and there is no guarantee that franchisees will achieve similar sales or earnings.
The financial performance data provided includes gross sales for several company-owned locations. For example, Desi District LLC reported gross sales of $7,526,994.07, Premier Meat Bazaar 423 Inc reported $2,050,736.60, Desi District Plano reported $545,663.83, Premier Eldorado Inc reported $6,851,280.85 and Desi Eats LLC reported $2,567,600.44. The FDD also includes estimated royalty fees for each location, calculated as 4% of gross sales. These figures are provided as historical data and are not projections of future performance for franchise locations.
Prospective franchisees should carefully consider this disclaimer and understand that their financial performance may differ significantly from the figures presented in Item 19. Desi District encourages prospective franchisees to conduct their own independent research and due diligence, including consulting with financial advisors, to assess the potential financial performance of a franchise location. The FDD also notes that written substantiation of the information contained in Item 19 will be made available to prospective franchisees upon reasonable request.