Who bears the cost and expense of the replacement Baya Bar General Manager's training?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4.3 If the General Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee shall promptly notify Franchisor and designate a replacement within thirty (30) days after the General Manager ceases to serve, such replacement being subject to the same qualifications required by this Agreement. Franchisee's replacement General Manager shall attend and satisfactorily complete the Initial Management Training Program, at Franchisee's sole cost and expense, including the payment of the thencurrent tuition. Until such replacement is designated and trained, Franchisee shall provide interim management of the Franchised Business, who shall act in accordance with the terms of this Agreement. Any failure to comply with the requirements of this Section shall be deemed a material event of default under this Agreement. Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until such General Manager is properly trained or certified in accordance with Franchisor's requirements, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by Franchisor, and shall be withdrawn from Franchisee's designated bank account in accordance with Section 6.1.4.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchisee is responsible for the costs associated with training a replacement General Manager. Specifically, if the initially appointed General Manager can no longer fulfill their duties, the franchisee must designate a replacement within 30 days.
The replacement General Manager is required to attend and satisfactorily complete the Initial Management Training Program. The franchisee bears the sole cost and expense of this training, including the payment of the then-current tuition fees. Until a suitable replacement is designated and fully trained, the franchisee is obligated to provide interim management for the Baya Bar location, adhering to the terms outlined in the Franchise Agreement.
Failure to comply with these requirements is considered a material breach of the Franchise Agreement. In such cases, Baya Bar, at its discretion, may provide interim management support and charge the franchisee a fee for this service. This fee covers the then-current interim management support fee, along with any associated costs for travel, lodging, meals, and other expenses reasonably incurred by Baya Bar. These charges will be withdrawn from the franchisee's designated bank account.