Does Desi District require franchisees to have their landlord sign a Rider to Lease Agreement?

According to Desi District's 2024 Franchise Disclosure Document, franchisees must use reasonable efforts to have their landlord sign the franchisor's form of Rider to Lease Agreement. This agreement is included as Exhibit D in the FDD. While Desi District requires franchisees to make reasonable efforts to obtain the landlord's signature, the language suggests that it is not an absolute requirement, but rather a strong recommendation.

This requirement is related to Desi District's approval of the franchisee's business location, which must meet the franchisor's specifications. The Rider to Lease Agreement likely contains provisions that protect Desi District's interests, such as ensuring the lease terms align with the franchise agreement and providing the franchisor with certain rights in the event of a franchisee default or termination.

For a prospective franchisee, this means they should be prepared to present the Rider to Lease Agreement to their landlord during lease negotiations. It is important to understand the terms of the Rider and how they might affect the landlord's obligations. While "reasonable efforts" are required, franchisees should clarify with Desi District what specific actions constitute reasonable efforts and what recourse is available if the landlord refuses to sign the agreement. This could impact site selection and lease negotiations.