What condition must be met or waived for a Baya Bar Developer to execute an additional Franchise Agreement for subsequent Baya Bar outlets?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
r shall not unreasonably withhold consent for such reasonable extension provided that Developer has (i) submitted its extension request in a timely manner; (ii) demonstrated diligent efforts to meet the original Mandatory Open Date; and (iii) has at all times acted in good faith and is otherwise fulfilling its obligations under this Agreement.
- 5.4 Conditions to Exercise Developer's Rights. All of the following conditions must be satisfied or waived, in Franchisor's sole discretion, before Franchisor grants Developer the right to develop an additional Baya Bar outlet in accordance with Section 4.1 hereof and pursuant to a Franchise Agreement:
- 5.4.1 Developer shall (i) request Franchisor's then-current Franchise Disclosure Document, (ii) submit to Franchisor all information and other documents requested by Franchisor prior to and as a basis for the issuance of Franchise Agreements in the System, (iii) submit to Franchisor all financial statements reasonably requested by Franchisor, and (iv) satisfy Franchisor's then-current financial criteria for multi-unit franchisees.
- 5.4.2 Developer shall be in full compliance with this Agreement, the Mandatory Development Schedule, and all Franchise Agreements with Franchisor and any other agreement with Franchisor or Franchisor's affiliates;
- 5.4.3 Developer has demonstrated the management skills necessary for competent operation, organization, customer service and record keeping of an additional Baya Bar outlet as determined by Franchisor, in Franchisor's sole discretion.
- 5.5 Termination for Failure of Condition. Notwithstanding anything to the contrary contained herein, in the event that Franchisor determines, in Franchisor's sole and absolute discretion, that any condition set forth in Section 5.4 hereof cannot be satisfied, Franchisor may terminate this Agreement upon written notice to Developer.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, before a Baya Bar Developer can be granted the right to develop an additional Baya Bar outlet and execute a Franchise Agreement, certain conditions outlined in Section 5.4 must be satisfied or waived by Baya Bar, in its sole discretion.
These conditions include the developer requesting Baya Bar's current Franchise Disclosure Document, submitting all required information and documents, providing requested financial statements, and meeting Baya Bar's current financial criteria for multi-unit franchisees. Additionally, the developer must be in full compliance with the Development Agreement, the Mandatory Development Schedule, all Franchise Agreements with Baya Bar, and any other agreements with Baya Bar or its affiliates.
Furthermore, the developer needs to demonstrate the necessary management skills for competent operation, organization, customer service, and record keeping of an additional Baya Bar outlet, as determined by Baya Bar in its sole discretion.
Failure to meet these conditions may result in Baya Bar terminating the Development Agreement, though this termination will not affect the validity of any other agreements between Baya Bar and the developer, provided the developer is in full compliance with those other agreements.