On what date does the Baya Bar franchise agreement terminate?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
itory. Franchisee agrees that such implementation of Franchisor's rights pursuant to this Section 3.2 is deemed not to impair or injure Franchisee's rights pursuant to Section 2 hereof.
- 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").
- 5. SUCCESSOR OPTIONS. Subject to the terms and conditions of this Agreement, Franchisee shall have the right, following the expiration of the Term hereof, to enter into a new franchise agreement and other agreements then customarily employed by Franchisor
and in the form then generally being offered to prospective franchisees in the state in which the Territory is located (the "Successor Franchise Agreement") for two (2) additional terms of five (5) years. The term of each such Successor Franchise Agreement shall commence upon the date of expi
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchise agreement's term begins on the effective date and concludes ten years after the opening date, as specified in Section 8 of the agreement. This duration is referred to as the "Term."
Baya Bar offers franchisees the option to renew their franchise agreement under certain conditions. Franchisees have the right to enter into a new franchise agreement, known as the "Successor Franchise Agreement," for two additional terms of five years each, following the initial term's expiration. The commencement of each subsequent Successor Franchise Agreement term aligns with the expiration date of the preceding term.
To exercise this renewal option, Baya Bar franchisees must meet specific requirements, including completing any additional required training to the Franchisor's satisfaction, securing the right to continue occupying the premises or obtaining approval for a new location, executing a general release of all claims against Baya Bar, performing any required remodeling to conform to current standards, paying a Successor Agreement Fee of $3,500 per term, and signing the Successor Franchise Agreement.