What is the relationship between the Desi District franchisee's obligations (Item 9) and the franchisor's pre-opening obligations (Item 11)?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in agreement | Disclosure document item |
|---|---|---|
| a. Site selection and acquisition/lease | Franchise Agreement (FA): §§ 6.1, 6.2 Multi-Unit Development Agreement (MUDA): Not Applicable | Item 11 |
| b. Pre-opening purchase/leases | FA: §§ 6.2, 6.3 MUDA: Not Applicable | Items 5, 7, 8 and 11 |
| c. Site development and other pre-opening | FA: Article 6 | Items 5, 7, 8 and 11 |
| requirements | MUDA: §§1(a), 3 | |
| d. Initial and ongoing training | FA: §§ 5.4, 6.4, 7.6 MUDA: Not Applicable | Items 5, 6, 8 and 11 |
| e. Opening | FA: §§ 6.5, 6.6 MUDA: §1(a) | Items 7, 8 and 11 |
| f. Fees | FA: Article 4, §§ 5.5, 7.8, 10.5, 11.2, 11.3, 15.2, 16.1, 17.6 MUDA: §1(a) | Items 5, 6 and 7 |
| g. Compliance with standards and policies/operating manual | FA: §§ 6.3, 7.1, 7.3, 7.5, 7.9 –7.13, 7.15, 10.1, 10.4, 11.1 MUDA: Article 1 | Items 8, 11 and 14 |
| h. Trademarks and proprietary information | FA: Article 12, § 13.1 MUDA: Not Applicable | Items 13 and 14 |
| i. Restrictions on products/services offered | FA: § 7.3 MUDA: Not Applicable | Items 8, 11 and 16 |
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, and it cross-references Item 11, which details some of the franchisor's assistance, particularly during the pre-opening phase. This indicates that the franchisee's responsibilities are often linked to the support and services that Desi District provides.
Specifically, the table in Item 9 lists several franchisee obligations, such as site selection, pre-opening purchases and leases, site development, initial and ongoing training, and opening procedures. Each of these obligations is cross-referenced to Item 11, suggesting that Desi District provides some form of assistance or guidance in these areas. For example, under 'Site selection and acquisition/lease,' Item 11 is referenced, implying that Desi District offers support in helping the franchisee find and secure a suitable location. Similarly, for 'Pre-opening purchase/leases' and 'Site development and other pre-opening requirements,' the reference to Item 11 indicates that Desi District provides assistance with these pre-opening tasks.
This interlinking of Item 9 and Item 11 highlights a collaborative relationship where the franchisee is responsible for fulfilling certain obligations, but Desi District offers support, resources, and training to help them meet these obligations. Prospective franchisees should carefully review both Item 9 and Item 11 to fully understand their responsibilities and the extent of support they can expect from Desi District during the pre-opening phase.