Who assumes the cost, liability, expense, and responsibility for obtaining and developing a site for the Baya Bar Franchised Business?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
8.1 Site Selection.
- 8.1.1 Franchisee assumes all cost, liability, expense and responsibility for obtaining and developing a site for the Franchised Business within the Territory and for constructing and equipping the Franchised Business at such site. Franchisee shall not make any binding commitment to a prospective vendor or lessor of real estate with respect to a site for the Franchised Business unless the site location is approved by Franchisor. While Franchisor may render assistance to Franchisee in the selection of a site, as set forth in Section 8.1.2 below, Franchisee has sole responsibility for procuring and developing a site for the Franchised Business and Franchisee may and is encouraged to consult with professionals of Franchisee's choosing in discharging such responsibility. Franchisee acknowledges that Franchisor's approval of a prospective site location is permission only, does not constitute a representation, promise, warranty or guarantee, express or implied, by Franchisor that the Franchised Business operated at that site will be profitable or otherwise successful, and cannot, and does not, create a liability for Franchisor. Franchisee releases Franchisor from any claims over the site location selection and evaluation by Franchisor, and Franchisee shall hold Franchisor harmless with respect to Franchisee's selection of the site for the Franchisee's Franchised Business.
- 8.1.2 Franchisee shall locate a site that satisfies the site selection guidelines provided to Franchisee by Franchisor and shall submit to Franchisor, in writing, a description of the site, together with written certification the site complies with Franchisor's site selection guidelines, and such other information and materials as Franchisor may reasonably require. Recognizing that time is of the essence, Franchisee shall submit such information and materials for a proposed site to Franchisor for its consent no later than sixty (60) days after the execution of this Agreement. Franchisor shall have ten (10) business days after receipt of this information
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchisee assumes all costs, liability, expense, and responsibility for obtaining and developing a site for the Franchised Business within the Territory and for constructing and equipping the Franchised Business at such site. However, the franchisee cannot make any binding commitment to a prospective vendor or lessor of real estate without the Franchisor's approval of the site location.
While Baya Bar may offer assistance in site selection, the franchisee has sole responsibility for procuring and developing the site. Baya Bar encourages franchisees to consult with professionals of their choosing during this process. The franchisor's approval of a site is simply permission and does not guarantee the success or profitability of the location.
Furthermore, the franchisee releases Baya Bar from any claims related to the site location selection and evaluation. The franchisee also agrees to hold Baya Bar harmless with respect to the franchisee's selection of the site for the Franchisee's Franchised Business. The franchisee must locate a site that satisfies the site selection guidelines provided by Baya Bar and submit a description of the site, along with written certification of compliance with the guidelines, to Baya Bar for approval no later than sixty (60) days after the execution of the Franchise Agreement. Baya Bar then has ten (10) business days to review the information.