factual

What System Standards will Desi District Franchise Group provide to the franchisee?

Desi_District Franchise · 2024 FDD

Answer from 2024 FDD Document

n, which will not be unreasonably withheld.

  • 6.6 Opening Date. Franchisee shall open the Business to the public on or before the date stated on the Summary Page.

ARTICLE 7. OPERATIONS

  • 7.1 Compliance with Manual and System Standards. Franchisee shall at all times and at its own expense comply with all mandatory obligations contained in the Manual and with all other System Standards.
  • 7.2 Compliance with Law. Franchisee and the Business shall comply with all laws and regulations. Franchisee and the Business shall obtain and keep in force all governmental permits and licenses necessary for the Business.
  • 7.3 Products, Services, and Methods of Sale. Franchisee shall offer all products and services, and only those products and services, from time to time prescribed by Desi District Franchise Group in the Manual or otherwise in writing. Franchisee shall make sales only to retail customers, and only at the Location. Unless otherwise approved or required by Desi District Franchise Group, Franchisee shall not make sales by any other means, including without limitation by wholesale, by delivery, by mail order or over the internet, or at temporary or satellite locations. Franchisee shall provide all products and perform all services in a high-quality manner that meets or exceeds the customer's reasonable expectations and all applicable System Standards.
  • 7.4 Prices. Desi District Franchise Group may require Franchisee to offer products and services at specific prices determined by Desi District Franchise Group if Desi District Franchise Group is promoting such products and services on a national, regional, or local market basis, for the duration of the promotion (but only to the extent permitted by applicable law).

7.5 Personnel.

  • (a) Management. The Business must at all times be under the on-site supervision of the Principal Executive or a general manager who has completed Desi District Franchise Group's training program.
  • (b) Service. Franchisee shall cause its personnel to render competent and courteous service to all customers and members of the public.

  • (c) Appearance. Franchisee shall cause its personnel to comply with any dress attire, uniform, personal appearance and hygiene standards set forth in the Manual.
  • (d) Qualifications. Desi District Franchise Group may set minimum qualifications for categories of employees employed by Franchisee.
  • (e) Sole Responsibility. Franchisee is solely responsible for the terms and conditions of employment of all of its personnel, including recruiting, hiring, training, scheduling, supervising, compensation, and termination. Franchisee is solely responsible for all actions of its personnel. Franchisee and Desi District Franchise Group are not joint employers, and no employee of Franchisee will be an agent or employee of Desi District Franchise Group. Within seven days of Desi District Franchise Group's request, Franchisee and each of its employees will sign an acknowledgment form stating that Franchisee alone (and not Desi District Franchise Group) is the employee's sole employer. Franchisee will use its legal name on all documents with its employees and independent contractors, including, but not limited to, employment applications, time cards, pay checks, and employment and independent contractor agreements, and Franchisee will not use the Marks on any of these documents.
  • 7.6 Post-Opening Training. Desi District Franchise Group may at any time require that the Principal Executive and/or any other employees complete training programs, in any format and in any location determined by Desi District Franchise Group. Desi District Franchise Group may charge a reasonable fee for any training programs. Desi District Franchise Group may require Franchisee to provide training programs to its employees. If a training program is held at a location which requires travel by the Principal Executive or any other employee, then Franchisee shall pay all travel, living and other expenses.
  • 7.7 Software. Without limiting the generality of Section 7.1 or Section 8.1, Franchisee shall acquire and use all software and related systems required by Desi District Franchise Group. Franchisee shall enter into any subscription and support agreements that Desi District Franchise Group may require. Franchisee shall upgrade, update, or replace any software from time to time as Desi District Franchise Group may require. Franchisee shall protect the confidentiality and security of all software systems, and Franchisee shall abide by any System Standards related thereto. Franchisee shall give Desi District Franchise Group unlimited access to Franchisee's point of sale system and other software systems used in the Business, by any means designated by Desi District Franchise Group.
  • 7.8 Customer Complaints. Franchisee shall use its best efforts to promptly resolve any customer complaints. Desi District Franchise Group may take any action it deems appropriate to resolve a customer complaint regarding the Business, and Desi District Franchise Group may require Franchisee to reimburse Desi District Franchise Group for any expenses.
  • 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by Desi District Franchise Group for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping. Desi District Franchise Group shall share with Franchisee the results of these programs, as they pertain to the Business. Franchisee must meet or exceed any

minimum score requirements set by Desi District Franchise Group for such programs. Desi District Franchise Group may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).

  • 7.10 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by Desi District Franchise Group (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by Desi District Franchise Group. Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
  • 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Desi District Franchise Group, in the manner specified by Desi District Franchise Group in the Manual or otherwise in writing. Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Desi District business. Franchisee shall comply with all procedures and specifications of Desi District Franchise Group related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
  • 7.12 Maintenance and Repair. Franchisee shall at all times keep the Business in a neat and clean condition, perform all appropriate maintenance, and keep all physical property in good repair. In addition, Franchisee shall promptly perform all work on the physical property of the Business as Desi District Franchise Group may prescribe from time to time, including but not limited to periodic interior and exterior painting; resurfacing of the parking lot; roof repairs; and replacement of obsolete or worn out signage, floor coverings, furnishings, equipment and décor. Franchisee acknowledges that the System Standards may include requirements for cleaning, maintenance, and repair.
  • 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, Desi District Franchise Group may require Franchisee to undertake and complete a Remodel of the Location to Desi District Franchise Group's satisfaction. Franchisee must complete the Remodel in the time frame specified by Desi District Franchise Group. Desi District Franchise Group may require the Franchisee to submit plans for Desi District Franchise Group's reasonable approval prior to commencing a required Remodel. Desi District Franchise Group's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.

Source: Item 22 — CONTRACTS (FDD page 52)

What This Means (2024 FDD)

According to Desi District's 2024 Franchise Disclosure Document, franchisees must comply with all mandatory obligations in the manual and all other System Standards at their own expense. These standards cover various aspects of the business, including compliance with laws and regulations, obtaining necessary permits and licenses, and offering only the products and services prescribed by Desi District. Franchisees must also adhere to specific methods of sale, ensuring high-quality products and services that meet or exceed customer expectations and System Standards. Desi District may also require franchisees to offer products and services at specific prices during promotional periods, as permitted by law.

System Standards also extend to personnel management. The business must be supervised by the Principal Executive or a trained general manager. Franchisees are responsible for ensuring their personnel provide competent and courteous service and comply with dress attire, uniform, personal appearance, and hygiene standards set forth in the manual. Desi District may set minimum qualifications for employee categories and can require the Principal Executive or other employees to complete additional training programs, for which the franchisee may be charged a reasonable fee. Franchisees are responsible for all travel and living expenses associated with these training programs.

Franchisees are required to use software and related systems as mandated by Desi District, including entering into necessary subscription and support agreements and updating software as required. They must also protect the confidentiality and security of all software systems and adhere to System Standards related to them. Franchisees must provide Desi District with unlimited access to their point of sale system and other software systems. Additionally, franchisees must use their best efforts to resolve customer complaints promptly and participate in customer evaluation and compliance programs, potentially including customer feedback systems, surveys, and mystery shopping, and meet minimum score requirements set by Desi District, including those from internet review sites. Franchisees must accept payment in forms designated by Desi District and comply with payment card industry data security standards (PCI-DSS).

Furthermore, franchisees must sell gift cards and participate in loyalty and incentive programs as specified by Desi District, honoring all valid gift cards regardless of the issuing location. They are also responsible for maintaining the business in a neat and clean condition, performing necessary maintenance and repairs, and completing any prescribed work on the physical property, including remodeling, within the specified timeframe. Desi District will provide its criteria for selecting locations and will review and advise on potential locations submitted by the franchisee, as well as provide sample building plans, specifications, and vendor lists. Desi District will also provide recommended administrative, bookkeeping, accounting, and inventory control procedures, which may become required System Standards.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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