What is the deadline for a Baya Bar franchisee to apply for approval to relocate or reconstruct the premises after a casualty?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
s, obtain all licenses and permits before opening, or open the Franchised Business within the time and in the manner specified in Article 8.
- 17.2.2 falsifies any report required to be furnished Franchisor hereunder;
- 17.2.3 ceases to operate the Franchised Business for a period of five (5) days or more; provided, however, that this provision shall not apply if through no fault of Franchisee, the premises are damaged or destroyed by a casualty and Franchisee applies within thirty (30) days after such event, for Franchisor's approval to relocate or reconstruct the premises (which approval shall not be unreasonably withheld) and Franchisee diligently pursues such reconstruction or relocation.
- 17.2.4 loses for any cause whatsoever the right of possession of the real property on which the Franchised Business is located;
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, if a Baya Bar location is damaged or destroyed by a casualty, the franchisee has 30 days to apply for Baya Bar's approval to relocate or reconstruct the premises. This application period begins after the event that caused the damage or destruction. The approval from Baya Bar cannot be unreasonably withheld, and the franchisee must diligently pursue the reconstruction or relocation.
This 30-day application window is crucial for a Baya Bar franchisee because failure to apply within this timeframe could lead to a default on the franchise agreement. According to the FDD, Baya Bar can terminate the agreement if the franchisee ceases to operate the franchised business for five or more days, but this does not apply if the franchisee applies for relocation or reconstruction approval within 30 days of a casualty.
Furthermore, the franchisee must restore the Baya Bar location to full operation within a reasonable time, not exceeding 120 days from the date the location became inoperable due to the casualty. This 120-day period may be extended at Baya Bar's discretion. Failing to meet this restoration deadline could also result in termination of the franchise agreement.