What is required for each future Desi District unit franchise under a Multi-Unit Development Agreement?
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 to develop multiple Desi District outlets on an agreed-upon schedule, they will be required to sign the then-current form of the franchise agreement for each future unit franchise. This agreement may differ from the franchise agreement included in the disclosure document.
This means that franchisees entering into a multi-unit development agreement should be aware that the terms and conditions of the franchise agreement they sign for subsequent locations may not be identical to the initial agreement. These changes could involve various aspects of the franchise operation, such as fees, operational requirements, or brand standards.
Prospective franchisees should carefully review the Multi-Unit Development Agreement and discuss with Desi District the potential changes that could occur in future franchise agreements. Understanding the scope of these potential changes is crucial for making informed decisions about long-term investment and development plans with Desi District.