What is the deadline for a Baya Bar franchisee to apply for relocation or reconstruction approval 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 Baya Bar's 2024 Franchise Disclosure Document, if a Baya Bar location is damaged or destroyed by a casualty through no fault of the franchisee, the franchisee has 30 days after the event to apply for Baya Bar's approval to relocate or reconstruct the premises.
This approval from Baya Bar cannot be unreasonably withheld, and the franchisee must diligently pursue the reconstruction or relocation. This provision protects the franchisee from being in default if they promptly seek approval to restore their business after an unforeseen event like a fire or natural disaster.
However, the franchisee must restore the Franchised Business location to full operation within a reasonable period time but not more than one hundred twenty (120) days from the date the Franchised Business location is rendered inoperable by any casualty, as may be extended by Franchisor in Franchisor's reasonable discretion.