Where are the defaults described that could lead to termination of the Baya Bar Multi-Unit Development Agreement?

According to Baya Bar's 2024 Franchise Disclosure Document, the defaults that could lead to termination of the Multi-Unit Development Agreement are described throughout the agreement itself. Section 7.1 states that Baya Bar may terminate the agreement only if the franchisee defaults, and it directs prospective franchisees to read the agreement carefully to understand these defaults.

The document further specifies that franchisees have 5 days to cure non-payments and other defaults, except for non-curable defaults, which are listed in the Multi-Unit Development Agreement and detailed in Section h.

Section h outlines non-curable defaults that result in automatic termination without notice, such as insolvency, bankruptcy, written admission of inability to pay debts, receivership, levy, composition with creditors, an unsatisfied final judgment for more than 30 days, or a foreclosure proceeding not dismissed within 30 days. Baya Bar may also terminate the Franchise Agreement with notice if the franchisee fails to acquire a site, complete construction, obtain permits, or open the Franchised Business within the required time frames; falsifies reports; ceases operations for 5 days or more (under certain conditions); loses possession of the premises (under certain conditions); fails to restore and re-open the Franchised Business within 120 days after a casualty (as may be extended by Baya Bar); fails to comply with applicable laws, defaults under any lease for the premises; understates Gross Revenue two or more times; fails to comply with insurance and indemnification requirements; attempts an unauthorized transfer; fails to transfer as required upon death or permanent disability; misrepresents or omits a material fact in applying for the Franchise; is convicted of a felony or crime that could damage Baya Bar's goodwill or reputation; receives an adverse judgment involving allegations of fraud, racketeering, or improper trade practices; conceals revenues or maintains false books; creates a threat or danger to public health or safety; refuses an inspection or audit; uses Baya Bar's trademarks, copyrighted material, or Confidential Information in an unauthorized manner; makes an unauthorized disclosure of Confidential Information; fails to comply with non-competition covenants; defaults in the performance of obligations three or more times during the term or receives two or more default notices in any 12-month period; defaults under any other agreement with Baya Bar or its affiliate; has insufficient funds to honor a check or EFT two or more times within any 12-month period; or terminates the Franchise Agreement without cause.