Does the Baya Bar agreement bind the heirs of the Developer?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.2 Successors. This Agreement shall bind and inure to the benefit of the successors and assigns of Franchisor and shall be personally binding on and inure to the benefit of Developer and his or her respective heirs, executors, administrators and successors or assigns; provided, however, the foregoing provision shall not be construed to allow a transfer of any interest of Developer in this Agreement, except in accordance with Article 6 hereof.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the agreement does bind the heirs of the developer. Specifically, the agreement is personally binding on the developer and extends to their heirs, executors, administrators, successors, or assigns. However, this is under the condition that any transfer of the developer's interest in the agreement must comply with Article 6 of the agreement, which likely outlines specific transfer conditions and restrictions.
This means that upon the death of a Baya Bar developer, their heirs may inherit the rights and obligations under the Development Agreement, provided they meet the franchisor's requirements for transfer. These requirements are designed to ensure that any new operator is qualified and capable of maintaining Baya Bar's standards.
It is important to note that while the agreement binds the heirs, it does not automatically allow them to take over the franchise without approval from Baya Bar. The franchisor retains the right to approve any transfer to ensure the continued success and integrity of the Baya Bar brand. A prospective franchisee should carefully review Article 6 of the Development Agreement to fully understand the conditions and procedures for transferring the agreement to their heirs or any other party.