Is training required for the proposed assignee and their owners and employees during a Desi District franchise transfer?

According to the 2024 Desi District Franchise Disclosure Document, if a franchisee seeks to transfer their franchise to a new owner, the proposed assignee, along with their owners and employees, must undergo training if required by Desi District. This condition is part of the requirements Desi District may impose when granting consent for the transfer.

This requirement ensures that the new management and staff are properly trained in Desi District's operational standards and procedures. The FDD specifies that the franchisee needs to provide at least 60 days prior notice to Desi District of the proposed transfer and obtain their consent, during which Desi District can set conditions.

In addition to the training requirement, the proposed assignee must also complete Desi District's franchise application processes, meet the then-applicable standards for new franchisees, and be approved by Desi District as franchisees. They must also execute Desi District's current form of franchise agreement, though they won't be required to pay an initial franchise fee. This ensures that the new franchisee is fully integrated into the Desi District system and maintains the brand's standards.

Furthermore, Desi District has the right of first refusal before a franchisee engages in a transfer, allowing them to purchase the assets of the franchise under the same terms. This provision, along with the training requirement and other conditions, allows Desi District to maintain control over who operates its franchises and ensures brand consistency.