Franchisel.com — FDD Diligence Memo
DESI DISTRICT
Generated 2026-04-06 · 2024 FDD · Government-filed source
DESI DISTRICT
2024 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Fin Strength
7
Econ Burden
8
Contract
5
Red Flags & Key Signals
Item 19 revenue data has not yet been normalized from covered-source filings. Economics score is unavailable.
After leaving the franchise, you cannot operate a competing business in this radius. Evaluate the real-world impact on your exit options.
Franchisor is not obligated to protect your market area. Encroachment from company-owned units or other franchisees is possible.
Franchisor financial statements are audited with no going concern warning.
Investment Overview
Items 5, 6, 7Total investment range: $250,000 – $700,000. Initial fee: $40,000. Royalty: 5%. Marketing fund: 2%.
Item 19 — Revenue
Item 19 — filed, figures not available in databaseEconomics not rated — Item 19 not available.
Not DisclosedThis franchisor filed an Item 19, but the figures are not currently available in our database. This reflects a data coverage gap — not a judgment on the quality of the disclosure.
Item 20 — System Health
Item 20 — 2024 FDDSystem flat — net 0 units in reporting period.
→ StableUnit count essentially unchanged.
Total Units
15
Net Growth
+0
Turnover
0%
Year-over-Year Trends
2024 FDDOpened
+0
Closed
-0
Net
+0
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2024 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Item 19 Filed — Figures Not Available
This franchisor filed an Item 19, but the figures are not currently in our database. This flag reflects a data coverage gap, not a judgment on the disclosure.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
Cure period is only 10 days. Ask: have you ever received a default notice? How did the franchisor handle it — were they reasonable?
Look for: A short cure period combined with aggressive enforcement is a serious risk. Look for franchisees who feel supported vs. managed by threat.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Territory — Item 12
NO exclusive territory — encroachment risk exists; franchisor reserves online/ecommerce sales; population-based territory (50,000 pop.).
Item 12 · 2024 FDD
Data sources: 2024 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2024 FDD filed with MN CARDS (file #11275). Data verified from government filing.. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.