factual

Who bears the cost of the initial onsite support and training provided by Baya Bar?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

    1. One of our representatives to provide onsite support, opening assistance and training for six days in connection with the opening of your Shop. We will provide this opening assistance and training at our expense, but if you request additional days of onsite assistance you must reimburse our costs for the additional days, including our per diem fee for our representative and the additional out-of-pocket expenses our representative incurs. (Franchise Agreement, Section 6.4) If you are opening your second or later Shop, we have the right to reduce the duration of our representative's visit or to not provide opening assistance.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–36)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar covers the expenses for the initial onsite support, opening assistance, and training for six days related to the opening of a franchisee's first shop. However, if the franchisee requests additional days of onsite assistance, they must reimburse Baya Bar for the additional costs. This reimbursement includes a per diem fee for the Baya Bar representative, as well as any out-of-pocket expenses incurred by the representative.

For franchisees opening their second or subsequent Baya Bar location, Baya Bar retains the right to reduce the duration of the representative's visit or to not provide opening assistance at all. This implies that the level of support provided for subsequent openings may be less than that for the initial opening, potentially requiring the franchisee to handle more of the opening tasks themselves or to pay for additional assistance if desired.

If a franchisee requests additional training or assistance onsite at their shop during the term of the Franchise Agreement, or if Baya Bar determines that additional support is necessary, the franchisee is responsible for paying Baya Bar's then-current per diem fee for each trainer provided. The franchisee must also reimburse Baya Bar for any expenses incurred by the trainers, including travel, lodging, and meals. This highlights the importance of budgeting for potential ongoing training and support costs throughout the franchise term.

Baya Bar may also choose to hold refresher training courses or an annual meeting of franchisees. While Baya Bar does not anticipate charging a fee for these events, franchisees are responsible for covering all expenses incurred by their attendees, including travel, lodging, meals, and wages. This is a common practice in franchising, where the franchisor provides the training content, but the franchisee bears the costs associated with attending the training.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.