What is the development fee for a Multi-Unit Development Agreement (MUDA) with Baya Bar?
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, if a franchisee and Baya Bar agree that the franchisee will develop and operate multiple Baya Bar franchised businesses, the franchisee must pay Baya Bar a development fee. This fee is 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 the franchisee commits to develop under the MUDA.
For example, if a franchisee commits to developing three Baya Bar shops, the development fee is calculated as follows: $35,000 (100% of the initial franchise fee for the first shop) + $15,000 (50% of the reduced initial franchise fee of $30,000 for the second shop) + $12,500 (50% of the reduced initial franchise fee of $25,000 for the third shop) = $62,500.
The development fee is imposed uniformly on all multi-unit developers and is fully earned by Baya Bar when received. These franchise fees are refundable only under specific conditions, such as if the franchisee fails to complete the pre-opening training program to Baya Bar's satisfaction or if Baya Bar concludes that the franchisee does not have the ability to satisfactorily operate the franchised business. Otherwise, the development fee is not refundable.