Does Desi District require franchisees to use specific marketing materials?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
omply with all instructions from Desi District Franchise Group or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
ARTICLE 9. MARKETING
- 9.1 Approval and Implementation. Franchisee shall not conduct any marketing, advertising, or public relations activities (including in-store marketing materials, websites, online advertising, social media marketing or presence, and sponsorships) that have not been approved by Desi District Franchise Group. Desi District Franchise Group may (but is not obligated to) operate all "social media" accounts on behalf of the System, or it may permit franchisees to operate one or more accounts. Franchisee must comply with any System Standards regarding marketing, advertising, and public relations, include any social media policy that Desi District Franchise Group may prescribe. Franchisee shall implement any marketing plans or campaigns determined by Desi District Franchise Group.
- 9.2 Use by Desi District Franchise Group. Desi District Franchise Group may use any marketing materials or campaigns developed by or on behalf of Franchisee, and Franchisee hereby grants an unlimited, perpetual, royalty-free license to Desi District Franchise Group for such purpose.
- 9.3 Market Cooperatives. Desi District Franchise Group may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative for the geographic area encompassing the Location has been established at the time Franchisee commences operations hereunder, Franchisee shall immediately become a member of such Market Cooperative. If a Market Cooperative for the geographic area encompassing the Location is established during the term of this Agreement, Franchisee shall become a member of such Market Cooperative within 30 days. Desi District Franchise Group shall not require
Franchisee to be a member of more than one Market Cooperative.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees must have marketing materials approved by Desi District. Franchisees are not allowed to conduct any marketing, advertising, or public relations activities, including in-store marketing materials, websites, online advertising, social media marketing, or sponsorships, without prior approval from Desi District Franchise Group.
Desi District has the option to manage all social media accounts for the system or allow franchisees to operate their own accounts, but franchisees must adhere to any system standards or social media policies set by Desi District. Franchisees are obligated to implement any marketing plans or campaigns determined by Desi District. Desi District also has the right to use any marketing materials developed by or for the franchisee, with the franchisee granting an unlimited, perpetual, royalty-free license for such use.
Furthermore, franchisees are required to spend up to 2% of gross sales each month on marketing the business, and Desi District has the sole discretion to determine what activities qualify as marketing. Franchisees must also develop a market introduction plan and obtain Desi District's approval at least 30 days before the business's projected opening date. These stipulations ensure that all marketing efforts align with the brand's standards and strategies, while also allowing Desi District to leverage franchisee-created content for broader marketing purposes.