Who has the right to terminate a Desi District Market Cooperative?

According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group has the authority to terminate any Market Cooperative. Market Cooperatives are formed to administer regional advertising and marketing programs for the benefit of franchisees. These cooperatives also develop standardized promotional materials, subject to Desi District Franchise Group's approval, for use in local advertising and promotion.

This control over Market Cooperatives allows Desi District to maintain brand consistency and ensure that marketing efforts align with the overall company strategy. While the members of the Market Cooperative determine the dues to be paid, which range from 1% to 5% of gross sales, Desi District retains the power to shut down the cooperative entirely.

Furthermore, if a Market Cooperative is terminated, any remaining funds are distributed back to the franchisees based on their contributions. This provision ensures that franchisees receive any remaining value from the cooperative should Desi District decide to terminate it. This clause protects the franchisees investment into the cooperative.