According to Desi District's 2024 Franchise Disclosure Document, Desi District has the right to require franchisees to lease real estate from them or their designee. The FDD specifies that the franchisee's business location is subject to Desi District's approval and must meet their specifications. Franchisees are expected to use reasonable efforts to have their landlord sign Desi District's form of Rider to Lease Agreement, which is attached to the disclosure document as Exhibit D. This indicates that while franchisees may not be explicitly required to lease directly from Desi District or its designee, the franchisor maintains significant control over the location and lease terms.

This requirement is fairly common in franchising, as it allows Desi District to maintain brand consistency and ensure that locations meet their standards. By approving the location and influencing the lease agreement, Desi District can protect its brand image and operational efficiency. However, it also means that franchisees have limited autonomy in choosing their business location and negotiating lease terms. The franchisee must make reasonable efforts to get the landlord to sign Desi District's Rider to Lease Agreement, which could potentially complicate lease negotiations.

Prospective franchisees should carefully review Exhibit D, the Rider to Lease Agreement, to understand the specific obligations and restrictions it imposes. They should also inquire about the criteria Desi District uses to approve locations and the flexibility they have in negotiating lease terms with landlords. Understanding these factors is crucial for assessing the potential costs and risks associated with securing a suitable location for a Desi District franchise.