How is the Desi District territory usually specified?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
ect to our approval.
Grant of Territory
Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 50,000 people within a 5-mile radius for the Eatery and a population of approximately 100,000 people within a 10-mile radius for the Grocery Market. Your territory will usually be specified as a radius around your location; however, we may
use other boundaries (such as county lines or other political boundaries, streets, geographical features, or trade area).
Relocation; Establishment of Additional Outlets
You do not have the right to relocate your business, and we have no obligation to approve any request for relocation. Our policy is to approve relocation of a franchisee's business on caseby-case basis, considering factors such as changes in demographics, profitability of your current business, or a loss of your premises due to circumstances beyond your control.
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Desi District business, (3) you must be in compliance with all brand requirements at your open Desi District business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the territory granted to a franchisee will be specified in the franchise agreement and determined by Desi District. The territory size is based on population density within a specific radius. For an Eatery, the territory typically encompasses a population of approximately 50,000 people within a 5-mile radius. For a Grocery Market, the territory usually includes around 100,000 people within a 10-mile radius.
While a radius is the typical method for defining the territory, Desi District retains the flexibility to use other boundaries. These alternative boundaries can include county lines, political boundaries, streets, geographical features, or trade areas. This allows Desi District to tailor the territory to the specific characteristics of the location and market.
It's important to note that the franchisee does not have the right to relocate their business, and Desi District is under no obligation to approve any relocation request. Relocation is considered on a case-by-case basis, taking into account factors such as demographic changes, the profitability of the current business, or loss of premises due to circumstances beyond the franchisee's control. Additionally, franchisees do not have the right to establish additional franchised outlets unless they sign a Multi-Unit Development Agreement.