Is there a Multi-Unit Development Agreement included as an exhibit in the Desi District FDD?

Yes, according to the 2024 Desi District Franchise Disclosure Document, a Multi-Unit Development Agreement is included as EXHIBIT C. This agreement is separate from the standard Franchise Agreement but is related when a franchisee commits to developing multiple Desi District businesses.

The Multi-Unit Development Agreement (MUDA) outlines the franchisee's commitment to open multiple Desi District locations according to a specific development schedule. The franchisee pays the total Initial Franchise Fee upon execution of the MUDA. The MUDA does not grant the franchisee the right to immediately begin construction or operation; a separate franchise agreement must be executed for each location.

Desi District may terminate the MUDA if the franchisee fails to meet the development schedule or if Desi District has the right to terminate any existing franchise agreement with the franchisee due to default. However, if Desi District terminates the MUDA due to the franchisee's default, the franchisee is not liable for lost future revenues or profits from unopened locations, and the franchisee can terminate the MUDA at any time. The franchisee's right to develop additional Desi District franchises after the first store is contingent on having sufficient financial and organizational capacity and being in full compliance with brand requirements at existing locations.