Is the Baya Bar development fee imposed uniformly on all multi-unit developers?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
nder any other circumstances.
Multi-Unit Development Agreement: If you and we agree that you will develop and operate multiple Baya Bar Franchised Businesses, then you will pay to us a development fee equal to 100% of the initial franchise fee for the first Shop to be developed, plus 50% of the reduced initial franchise fee for each additional Shop you commit to develop under the MUDA. For example, if you commit to develop three Shops, the development fee is calculated as $35,000 + (50% of $30,000=$15,000) + (50% of $25,000=$12,500) = $62,500. The development fee is imposed uniformly on all multi-unit developers and is fully earned by us when received. These franchise fees are refundable only as described abov
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the development fee is imposed uniformly on all multi-unit developers. The development fee is equal to 100% of the initial franchise fee for the first shop, plus 50% of the reduced initial franchise fee for each additional shop a developer commits to develop under the Multi-Unit Development Agreement (MUDA).
For example, if a developer commits to developing three Baya Bar shops, the development fee is calculated as follows: $35,000 for the first shop, plus 50% of $30,000 ($15,000) for the second shop, plus 50% of $25,000 ($12,500) for the third shop, totaling $62,500. This fee is fully earned by Baya Bar upon receipt.
This uniform application means that all multi-unit developers are subject to the same fee structure based on the number of units they commit to develop. This promotes fairness and transparency in Baya Bar's franchise development process. However, the development fee is non-refundable, except under specific conditions related to pre-opening training, so prospective developers should carefully consider their commitment before entering into a Multi-Unit Development Agreement.