What standards must a Desi District franchisee follow when constructing or remodeling the location?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
ement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by Desi District Franchise Group.
- 6.3 Development. Franchisee shall construct (or remodel) and finish the Location in conformity with Desi District Franchise Group's System Standards. If required by Desi District Franchise Group, Franchisee shall engage the services of an architect licensed in the jurisdiction of the Location. Franchisee shall not begin any construction or remodeling work without first obtaining Desi District Franchise Group's approval of Franchisee's plans. Desi District Franchise Group may, but is not required to, inspect Franchisee's construction or remodeling progress at any reasonable time. Franchisee shall not rely upon any information provided or opinions expressed by Desi District Franchise Group or its representatives regarding any architectural, engineering, or legal matters (including without limitation the Americans With Disabilities Act) in the development and construction of the Business, and Desi District Franchise Group assumes no liability with respect thereto. Desi District Franchise Group's inspection and/or approval to open the Business is not a representation or a warranty that the Business has been constructed in accordance with any architectural, engineering, or legal standards.
- 6.4 New Franchisee Training. Franchisee's Principal Executive and one additional chef or general manager must complete Desi District Franchise Group's training program for new
franchisees to Desi District Franchise Group's satisfaction at least four weeks before opening the Business.
- 6.5 Conditions to Opening. Franchisee shall notify Desi District Franchise Group at least 30 days before Franchisee intends to open the Business to the public.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees must adhere to specific standards during the construction or remodeling of their location. Franchisees are required to construct or remodel their location in accordance with Desi District's System Standards. These standards likely cover various aspects of the restaurant's design, layout, and appearance, ensuring consistency across all franchise locations. Franchisees must obtain approval of their plans from Desi District before starting any construction or remodeling work. Desi District has the option, but not the obligation, to inspect the franchisee's construction or remodeling progress at any reasonable time.
If required by Desi District, franchisees must engage the services of a licensed architect in the jurisdiction of the location. This requirement ensures that the construction or remodeling project complies with local building codes and regulations. However, franchisees are not allowed to rely on any information or opinions from Desi District or its representatives regarding architectural, engineering, or legal matters, including compliance with the Americans With Disabilities Act. Desi District assumes no liability for such matters.
In addition to initial construction, Desi District may also require franchisees to undertake a remodel of their location to meet current System Standards. Franchisees must complete the remodel within the timeframe specified by Desi District and may be required to submit plans for approval before starting the remodel. However, Desi District limits when they can require a remodel: they will not require one during the first two or last two years of the franchise term (unless it's a condition for renewal or transfer), and they will not require one more than once every five years from the completion date of the prior remodel. These provisions provide some predictability for franchisees regarding remodel expenses.
Overall, these requirements ensure that Desi District maintains a consistent brand image and operational standards across all franchise locations. Franchisees should carefully review the System Standards and communicate with Desi District throughout the construction or remodeling process to ensure compliance and avoid potential issues.