Besides the Franchise Disclosure Document, what other representations are binding on Baya Bar?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
per further acknowledges that, except as may be set forth in Franchisor's Disclosure Document, no representations of performance (financial or otherwise) for the Baya Bar outlets to be developed hereunder has been made to Developer by Franchisor and Developer hereby waives any claim against Franchisor for any business failure Developer may experience as a developer under this Agreement.
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- Developer agrees that no claims of success or failure have been made to him or her prior to signing this Agreement and that he/she understands all the terms and conditions of this Agreement. Developer further acknowledges that this Agreement contains all oral and written agreements, representations and arrangements between the parties hereto, and any rights which the respective parties hereto may have had under any other previous contracts are hereby cancelled and terminated, and that this Agreement cannot be changed or terminated orally; provided, however, nothing in this Multi-Unit Development Agreement or in any related agreement is intended to disclaim the representations made to Developer in Franchisor's Franchise Disclosure Document.
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Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchise agreement contains all oral and written agreements, representations, and arrangements between the parties. Any prior contracts are canceled and terminated upon signing the franchise agreement. However, the agreement does not disclaim representations made in Baya Bar's Franchise Disclosure Document.
Baya Bar's Developer Acknowledgment Statement specifies that, except as set forth in the Franchise Disclosure Document, no performance representations (financial or otherwise) for the Baya Bar outlets have been made by the franchisor. The developer waives any claims against Baya Bar for business failure, agreeing that no claims of success or failure were made prior to signing the agreement. The developer also confirms that they have no knowledge of any representations by Baya Bar or its representatives that contradict the terms of the agreement or incorporated documents.
In essence, the franchise agreement emphasizes that the Franchise Disclosure Document is the primary source of binding representations from Baya Bar. Franchisees should rely on the information within the FDD and the franchise agreement itself, as other representations may not be binding. It is important for prospective franchisees to ensure that all important representations are included in these documents before signing.