When does the closing of the asset purchase between Baya Bar and the franchisee need to take place?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Closing of the purchase shall take place no later than thirty (30) days after determination of the fair market value.
- 18.2.2 With respect to the options described in Sections 18.2.1, Franchisee shall deliver to Franchisor in a form satisfactory to Franchisor, such warranties, releases of lien, bills of sale, assignments and such other documents and instruments that Franchisor deems necessary in order to perfect Franchisor's title and possession in and to the assets being purchased or assigned and to meet the requirements of all tax and government authorities.
If, at the time of closing, Franchisee has not obtained all of these certificates and other documents, Franchisor may, in its sole discretion, place the purchase price in escrow pending issuance of any required certificates or documents.
- 18.2.3 Franchisor shall be entitled to assign any and all of its option in Section 18.2.1 to any other party, without the consent of Franchisee.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the closing of the asset purchase between Baya Bar and the franchisee must occur no later than thirty days after the fair market value has been determined.
This means that once the fair market value of the assets to be purchased is established, the franchisee and Baya Bar have a 30-day window to finalize the transaction. This timeframe allows both parties to prepare the necessary documentation and complete the transfer of ownership.
It is important for prospective franchisees to understand this timeline to ensure they are prepared to meet the closing requirements within the specified period. Failure to do so could potentially delay or complicate the asset purchase. Franchisees should also note that Baya Bar has the right to assign its option to purchase to another party without the franchisee's consent.