Within what area must a Desi District franchisee find a potential location?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
or Desi District, which will include Franchisee's location (or territory) and telephone number.
ARTICLE 6. LOCATION, DEVELOPMENT, AND OPENING
- 6.1 Determining Location and Territory. If the Location and Territory are not stated on the Summary Page:
- (i) Franchisee shall find a potential Location within the Development Area described on the Summary Page. Franchisee shall submit its proposed Location to Desi District Franchise Group for acceptance, with all related information Desi District Franchise Group may request. If Desi District Franchise Group does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (ii) When Desi District Franchise Group accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. Desi District Franchise Group shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Desi District Franchise Group fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code which includes the location of the franchised business and the immediately surrounding zip codes which together comprise a total of 100,000 population from the location of the franchised business.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, a franchisee must find a potential location within the Development Area described on the Summary Page. The franchisee is then required to submit the proposed location to Desi District for acceptance, along with any related information that Desi District may request. If Desi District does not accept the proposed location in writing within 30 days, it is considered rejected.
Once Desi District accepts the location, they will issue a Location Acceptance Letter, which includes the location and territory. Desi District determines the territory at its discretion, following the guidelines in Item 12 of the Franchise Disclosure Document. If Desi District does not define the territory in writing within 60 days after the business opens, the territory will default to the zip code of the franchised business and the immediately surrounding zip codes, encompassing a total population of 100,000 from the business location.
Desi District also provides criteria for selecting locations and will advise franchisees on potential locations they submit. However, the FDD stipulates that Desi District's advice or acceptance of a site does not guarantee the business's success, and Desi District assumes no liability regarding the location of the business. This means that while Desi District offers guidance, the ultimate responsibility for selecting a viable location rests with the franchisee, who bears the risk of the location's performance.