What is the 'Territory' mentioned in the Desi District franchise agreement?

According to the 2024 Desi District Franchise Disclosure Document, the 'Territory' is determined by Desi District Franchise Group in its good faith discretion, substantially in accordance with Item 12 of the FDD. Item 12 of the FDD is not provided in the given excerpts.

If the Territory is not stated on the Summary Page when the Franchise Agreement is signed, the franchisee must find a potential location within the Development Area described on the Summary Page and submit it to Desi District for acceptance. Once Desi District accepts the location, they will issue a Location Acceptance Letter, which states the Location and Territory.

If Desi District fails to state the Territory in writing within 60 days after the franchisee opens the business to the public, the territory will be deemed to be the zip code which includes the location of the franchised business and the immediately surrounding zip codes which together comprise a total of 100,000 population from the location of the franchised business. Desi District retains the right to establish and license others to establish and operate Desi District businesses outside the Territory, operate and license businesses anywhere that do not operate under the Desi District brand name, and sell and license others to sell products and services in the Territory through channels of distribution other than Desi District outlets.

The franchisee is granted the right to operate a Desi District business solely at the Location. Desi District will not establish, nor license the establishment of, another business within the Territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Desi District business. For two years after the Franchise Agreement expires or is terminated for any reason, the Guarantor shall not directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor located within five miles of Franchisee's Territory or the territory of any other Desi District business operating on the date of termination or transfer, as applicable. If the Franchise Agreement is terminated before the Territory is determined, then the area of non-competition will the Development Area and the territory of any other Desi District business operating on the date of termination.

Prospective franchisees should carefully review Item 12 of the FDD, which is not included in the provided excerpts, and discuss the Territory and Development Area with Desi District to fully understand the implications for their franchise location and competitive landscape.