During the build-out of a new Baya Bar location, is the term of the Franchise Agreement abated?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- **4.
TERM.** Unless terminated earlier in accordance with the terms set forth in this Agreement, this Agreement and the Franchise granted hereunder shall commence upon the Effective Date set forth above, and terminate on the date that is ten (10) years following the Opening Date, as defined in Section 8 hereof (the "Term").
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Baya Bar does not explicitly state whether the term of the Franchise Agreement is abated during the build-out of a new location. However, the document does specify the term's commencement and duration.
According to the FDD, the Franchise Agreement commences on the Effective Date and terminates ten years following the Opening Date. The 'Opening Date' is defined in Section 8 of the agreement, which is not provided in the excerpts.
Since the provided excerpts do not detail any abatement of the franchise term during the build-out phase, it is important for a prospective franchisee to clarify this point with Baya Bar. Understanding whether the term runs concurrently with the build-out period or begins after the store opens is crucial for accurately assessing the franchise's duration and potential return on investment.