Risk Score
Pending analysis
Investment Range
$669,200 - $2,503,000
Franchise Fee
$22,500
Min Cash Required
$75,000
Total US Locations
5
Business Summary
Desi District operates a fast-casual eatery that serves Indian fusion food. Franchisees also have the option to include an accompanying grocery market under the same roof, offering Desi District's proprietary line of products, alongside other Indian grocery items. The business aims to provide a high-end dining and shopping experience for customers looking for Indian street foods and specialty groceries.
Corporate History
Desi District Franchise Group, LLC was formed in Delaware on May 31, 2024, and began offering franchises in June 2024. Although the franchisor itself is new, the Desi District brand has been operated by its affiliate, Desi District, LLC, since 2016 in Irving, Texas. Other affiliates have since opened additional company-owned locations in Texas starting in 2019, 2021, and 2022. Another affiliate, TAR Distributors, LLC, was formed in 2019 and supplies food products and merchandise to all Desi District locations.
Financial Overview
Investment Range
$669,200 - $2,503,000
Franchise Fee (Low)
$22,500
Franchise Fee (High)
$40,000
Minimum Cash Required
$75,000
Royalty %
4%
Marketing %
2%
Equipment Costs (Low)
$517,000
Equipment Costs (High)
$1,865,000
Working Capital
$162,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Desi District Franchise Group is a very new company, having been formed on May 31, 2024, and commencing operations on June 15, 2024. Its financial health is represented by an audited opening balance sheet as of June 15, 2024, which shows $138,000 in total assets and zero liabilities, resulting in $138,000 in equity. The auditors provided an unqualified opinion, indicating the financial position is presented fairly. Since Desi District Franchise Group is in its initial development stage as a franchisor, there is no historical financial performance to assess trends in working capital, cash flow, or profitability. Therefore, potential franchisees should understand that this is a new franchising entity with limited operating history.
Financing Details
Desi District does not offer any direct or indirect financing to its franchisees. Desi District also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
5
Franchised Units
0
Corporate Units
5
Avg Square Footage
6,750
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Desi District has no litigation to report, as no litigation is required to be disclosed in this item.
Bankruptcy History
Desi District has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Desi District franchise, franchisees must provide advance notice to Desi District, be in full compliance with all contractual obligations to Desi District and third parties, and renovate their location to meet Desi District's then-current standards. Franchisees will also need to sign Desi District's current form of franchise agreement and related documents, which includes a personal guaranty, and execute a general release of any claims against Desi District and its affiliates.
Training & Support Program
Franchisor Assistance
Desi District provides extensive support to its franchisees. Before opening, Desi District reviews and advises on potential locations, provides standard building plans and specifications, and offers suggested staffing levels and hiring guidelines. Franchisees also receive a list of approved suppliers for equipment, signs, fixtures, and initial inventory, access to the Brand Standards Manual, and initial training. Desi District advises on market introduction plans and provides up to two weeks of on-site opening support. After opening, Desi District offers advice by phone or electronic communication for improving the business and resolving operational issues, though in-person support may incur a fee. They also provide recommended prices and procedures for administration, bookkeeping, accounting, and inventory control, and maintain the brand's website which includes franchisee information.
Initial Training Hours
45
Training Location
Frisco, TX, or franchisee's location
Ongoing Support
After opening, Desi District offers advice by telephone or electronic communication to franchisees who request assistance with improving their business and resolving operational issues. If in-person support is needed, a fee plus expenses may be charged. Desi District also provides recommended pricing for products and services upon request, along with recommended procedures for administration, bookkeeping, accounting, and inventory control. The franchisor maintains the brand's website, which includes information about each franchisee's business.
Franchise Requirements
Ideal Candidate Profile
Desi District Franchise Group is looking for franchisees who are capable of developing and operating a fast-casual eatery, potentially with an attached grocery market, in highly visible locations targeting upscale demographics. While direct personal participation in the daily operation is not strictly required, it is recommended. Each Desi District franchisee must designate a 'Principal Executive' who will be primarily responsible for the business, hold at least 10% ownership, and complete all required initial and ongoing training programs. This Principal Executive must also make reasonable efforts to attend all required meetings, including national or regional brand conferences. A key requirement is successfully completing a training program and passing a test on the content, with failure potentially leading to franchise agreement termination. If the business is owned by an entity, all owners must sign a personal guaranty and non-compete agreement. The general manager (who can be the Principal Executive or another hired person) must also successfully complete the training program.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
exclusive
Territory Size Requirements
Desi District territories are defined by population and radius, varying by the business model. For the Eatery-only model, a territory will encompass approximately 50,000 people within a 5-mile radius. For the Eatery & Market model, the territory will include approximately 100,000 people within a 10-mile radius.
Staffing Notes
Desi District Franchise Group will provide franchisees with suggested staffing levels and hiring guidelines. Operational instructions in the Brand Standards Manual can be used for training new employees. All hiring decisions, conditions of employment, and responsibility for personnel actions are solely the franchisee's. Desi District franchisees are not required to personally operate their business daily, but it is recommended. Each Desi District location must always be supervised on-site by the Principal Executive or a general manager who has completed Desi District Franchise Group's training program. There are no restrictions on who can be hired as an on-premises supervisor. If requested, Desi District franchisees must have their general manager and other key employees sign a confidentiality and non-compete agreement. Desi District Franchise Group may set minimum qualifications for employee categories, and personnel must provide competent, courteous service and comply with dress attire, uniform, appearance, and hygiene standards in the Manual. Franchisees must also ensure their employees sign an acknowledgment form stating the franchisee is the sole employer.