Under what condition does Desi District Franchise Group charge a replacement/additional training fee?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
chisee shall contribute to the Market Cooperative a percentage of Gross Sales (or other amount) determined by the Market Cooperative, not to exceed 5%.
- 4.4 Replacement / Additional Training Fee. If Franchisee sends an employee to Desi District Franchise Group's training program after opening, Desi District Franchise Group may charge its then-current training fee. As of the date of this Agreement, the training fee is $350 per day.
- 4.5 Non-Compliance Fee. Desi District Franchise Group may charge Franchisee $500 for any instance of non-compliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to Desi District Franchise Group) which Franchisee fails to cure after 30 days' notice. Thereafter, Desi District Franchise Group may charge Franchisee $250 per week until Franchisee ceases such non-compliance.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, a replacement or additional training fee may be charged if a franchisee sends an employee to Desi District's training program after the franchise location has opened. As of the date of the Franchise Agreement, this training fee is $350 per day.
This means that after the initial training provided to the Principal Executive and up to two additional team members before opening, any subsequent training of employees will incur a daily fee. This fee covers the cost of the training program itself and is separate from any travel, living, or other expenses the franchisee might incur for sending employees to the training.
Franchisees should factor this potential cost into their operating budget, especially if they anticipate high employee turnover or a need for ongoing training to maintain Desi District's standards. It is also important to note that Desi District may also require the Principal Executive and/or any other employees to complete training programs at any time, and may charge a reasonable fee for these programs.