Is the Baya Bar agreement personally binding on 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 is personally binding on the Developer. Specifically, the agreement extends not only to the Developer but also to their heirs, executors, administrators, successors, or assigns.
This means that the Developer is individually responsible for upholding the terms and conditions outlined in the franchise agreement. This personal obligation remains in effect and extends to the Developer's estate in the event of their death or incapacitation.
However, the FDD stipulates that this personal binding does not automatically allow the Developer to transfer their interest in the agreement, unless it complies with specific transfer provisions detailed elsewhere in the document. This ensures that while the agreement is a personal obligation, any transfer of rights must still be approved and managed according to Baya Bar's established procedures.