What is the required action if a franchisee signs a Multi-Unit Development Agreement with Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
If you sign a Multi-Unit Development Agreement (attached as Exhibit C to this disclosure document), you will develop multiple Desi District outlets, on an agreed-upon schedule. For each
future unit franchise, we will require you to sign our then-current form of franchise agreement, which may be different from the form of franchise agreement included in this disclosure document.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–12)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if a franchisee signs a Multi-Unit Development Agreement, they will be required to develop multiple Desi District outlets based on an agreed-upon schedule. This agreement is included as Exhibit C to the disclosure document.
For each future Desi District franchise unit to be developed under the Multi-Unit Development Agreement, the franchisee must sign Desi District's then-current form of franchise agreement. This subsequent franchise agreement may differ from the one included in the current Franchise Disclosure Document.
This means that while the initial agreement sets the stage for developing multiple units, each individual unit will be governed by a separate franchise agreement that is current at the time that particular unit is opened. Prospective franchisees should carefully review Exhibit C and understand the obligations and timelines associated with developing multiple units. They should also be aware that the terms of the franchise agreement for each subsequent unit may change, potentially affecting their investment and operational requirements.