Under what conditions can a Desi District franchisee make public statements regarding Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- (3) That no person acting on Desi District Franchise Group's behalf made any statement or promise regarding the costs involved in operating a Desi District franchise that is not in the Disclosure Document or that is contrary to, or different from, the information in the Disclosure Document.
- (4) That no person acting on Desi District Franchise Group's behalf made any claim or representation to Franchisee, orally, visually, or in writing, that contradicted the information in the Disclosure Document.
- (5) That no person acting on Desi District Franchise Group's behalf made any statement or promise regarding the actual, average or projected profits or earnings, the likelihood of success, the amount of money Franchisee may earn, or the total amount of revenue a Desi District franchise will generate, that is not in the Disclosure Document or that is contrary to, or different from, the information in the Disclosure Document.
- (6) That no person acting on Desi District Franchise Group's behalf made any statement or promise or agreement, other than those matters addressed in this Agreement, concerning advertising, marketing, media support, market penetration, training, support service, or assistance that is contrary to, or different from, the information contained in the Disclosure Document.
- (7) Franchisee understands that this Agreement contains the entire agreement between Desi District Franchise Group and Franchisee concerning the Desi District franchise, which means that any oral or written statements not set out in this
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, a Desi District franchisee's ability to make public statements about the franchise is limited by the terms of the Franchise Agreement. Specifically, the franchisee acknowledges that no statements or promises were made on behalf of Desi District Franchise Group that are not already included in the Disclosure Document. This includes statements about costs, profits, earnings, or the likelihood of success. The franchisee agrees that the Franchise Agreement is the entire agreement between them and Desi District, meaning any external oral or written statements are not binding. Therefore, a franchisee should not rely on any claims or representations not explicitly stated in the agreement or the Disclosure Document.
This aspect of the agreement protects Desi District from franchisees making unsubstantiated or misleading claims about potential earnings or business operations. It ensures that all public statements align with the information provided in the FDD, which Desi District is responsible for. For a prospective franchisee, this means they should carefully review the FDD and the Franchise Agreement and rely solely on the information contained within those documents when evaluating the franchise opportunity.
Furthermore, the franchisee must adhere to security procedures prescribed by Desi District for maintaining confidentiality and can only disclose confidential information to employees to the extent necessary for business operations. They are prohibited from using such information in any other business or manner not specifically authorized or approved in writing by Desi District. This extends to maintaining confidentiality both during and after the term of the Franchise Agreement.
In practical terms, a Desi District franchisee needs to be cautious about what they say publicly regarding the franchise. They should avoid making any claims about potential earnings or business operations that are not supported by the FDD or the Franchise Agreement. Any public statements should be consistent with the information provided by Desi District and should not disclose any confidential information without written approval. This ensures compliance with the agreement and protects both the franchisee and the franchisor from potential legal issues.