Is the cost of the Baya Bar pre-opening training program included in the initial franchise fee?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
attached to this Disclosure Document as Exhibit E. Our Manual contains approximately 404 pages.
Training Program: No later than four weeks before the date the Shop begins operation, up to three trainees (including you and the General Manager) must have completed, to our satisfaction, our mandatory pre-opening training program. This training may be conducted at our corporate headquarters or at our affiliates' location, at your accepted location, or at another location we designate. Our pre-opening training program lasts for approximately two weeks. Pre-opening training programs will be offered at various times during the year depending on the number of new franchisees entering the System, replacement general managers and other personnel needing training, the number of new Shops being opened and the timing of the scheduled openings of Shops. We anticipate holding training classes four to six times per year.
We will provide instructors and training materials for three trainees and the cost is included in the initial franchise fee, but you must pay for all expenses you, the General Manager and other personnel incur for the pre-opening training program, including costs of travel, lodging, meals and applicable wages. You may also have additional personnel trained by us for the Shop, at your expense. We will determine whether your trainees have satisfactorily completed pre-opening training. If you and/or the General Manager do not satisfactorily complete the pre-opening training program or if we determine that you and/or your General Manager cannot satisfactorily complete the pre-opening training program, you must designate a replacement to satisfactorily complete the pre-opening training before you will be permitted to open your Shop. If the replacement General Manager cannot complete the pre-opening training to our satisfaction, we have the right to terminate your Franchise Agreement and refund to you the initial franchise fee that you paid less any out-of-pocket costs we have incurred.
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, the cost of the pre-opening training program for up to three people is included in the initial franchise fee. This training is mandatory and must be completed no later than four weeks before the shop begins operation. The training program lasts approximately two weeks and may be conducted at Baya Bar's corporate headquarters, an affiliate's location, the franchisee's accepted location, or another designated location.
While the cost of the instructors and training materials for up to three trainees is covered by the initial franchise fee, the franchisee is responsible for all expenses incurred by themselves, the General Manager, and any other personnel during the training. These expenses include travel, lodging, meals, and applicable wages. Additional personnel can be trained at the franchisee's expense.
Satisfactory completion of the pre-opening training program is mandatory for the franchisee and/or the General Manager. If they do not complete the training satisfactorily, a replacement must be designated to complete the training before the shop can open. If a replacement General Manager cannot complete the training to Baya Bar's satisfaction, Baya Bar has the right to terminate the Franchise Agreement and refund the initial franchise fee, less any out-of-pocket costs incurred by Baya Bar.