Is TAR Distributors, Inc. an affiliate supplier for Desi District franchisees?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 11 for more details.
- D. Food Products and Inventory. You must purchase required food product from our affiliate, TAR Distributors, Inc. and our approved vendors as prescribed. See our Brand Standards/Operations Manual for details.
- E. Operating Equipment, Furniture, Fixtures. You will be required to purchase the furniture, fixtures and equipment needed to open and operate your Eatery and Market location from our approved vendors and according to our standards and specifications.
- F. Branding, Signage and Marketing Materials. You will be required to purchase the signage, branded items and marketing materials from our Affiliate and approved vendors and suppliers and according to our brand standards and specifications.
Us or our Affiliates as Supplier
Our affiliate, TAR Distributors, Inc. is currently a supplier of merchandise, apparel, food product and goods that you must purchase, and we reserve the right to be a supplier (or the sole supplier) of goods or services in the future.
Ownership of Suppliers
Outside of your requirement to purchase some of the food product and retail items from our Affiliate, none of our officers own any interest in a supplier to our franchisees.
Alternative Suppliers
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Issuing Specifications and Standards
We issue specifications and standards to you for applicable aspects of the franchise in our Manual and/or in written directives. We may issue new specifications and standards for any aspect of our brand system, or modify existing specifications and standards, at any time by revising our Manual and/or issuing new written directives (which may be communicated to you by any method we choose).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, TAR Distributors, Inc. is an affiliate supplier. Desi District franchisees are required to purchase food products from TAR Distributors, Inc., as well as from other approved vendors. Desi District also reserves the right to be a supplier or the sole supplier of goods or services in the future.
Outside of the requirement to purchase some food products and retail items from TAR Distributors, Inc., none of Desi District's officers own any interest in any other supplier to franchisees. However, franchisees do have the option to request approval for alternative suppliers in writing. Desi District will evaluate these requests based on criteria such as the supplier's capacity, quality, financial stability, reputation, and reliability, and will provide a written notification of approval or disapproval within 30 days.
Desi District will derive revenue from the required purchases and leases by franchisees. As a new franchisor, Desi District's total revenue in the prior fiscal year was $0, and the revenue from required purchases and leases of products and services by franchisees was also $0, representing 0% of total revenues. Desi District estimates that required purchases and leases account for 50% to 80% of the total purchases and leases needed to establish and operate the business.