What is the document called that outlines the Multi-Unit Development Agreement for Baya Bar?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
In certain circumstances, we will offer the right to enter into a Multi-Unit Development Agreement in the form attached as Exhibit C to this Disclosure Document (the "MUDA") to develop multiple Franchised Businesses to be located within a specifically described geographic area (the "Development Area"). We will determine the Development Area before you sign the MUDA and it will be included in the MUDA. You must establish the agreed upon number of Franchised Businesses within the Development Area according to a minimum performance schedule (the "Minimum Performance Schedule"), and you must sign a separate Franchise Agreement for each Shop established under the MUDA.
The Franchise Agreement for the first Shop developed under the MUDA will be in the form attached as Exhibit B to this Disclosure Document and we expect that you will sign the first Franchise Agreement at the same time you sign the MUDA. For each additional Shop developed under the MUDA, you must sign our then-current form of Franchise Agreement, which may be different from the form of Franchise Agreement included in this Disclosure Document. The size of the Development Area will vary depending upon local market conditions and the number of Shops to be developed.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 6–9)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the agreement outlining the terms for developing multiple franchise locations is called the Multi-Unit Development Agreement, or MUDA. This agreement, a sample of which is included as Exhibit C to the FDD, allows a franchisee to develop multiple Baya Bar locations within a specific geographic area.
The Development Area is determined by Baya Bar before the franchisee signs the MUDA and is included in the agreement. The franchisee is then required to establish the agreed-upon number of Baya Bar locations within that Development Area, adhering to a Minimum Performance Schedule. For each location opened under the MUDA, the franchisee must also sign a separate Franchise Agreement.
The Franchise Agreement for the initial Baya Bar shop developed under the MUDA is included as Exhibit B to the 2024 Disclosure Document. Baya Bar expects that the franchisee will sign the initial Franchise Agreement at the same time as the MUDA. However, for each additional Baya Bar shop developed under the MUDA, the franchisee must sign Baya Bar's then-current form of Franchise Agreement, which may differ from the sample included in the Disclosure Document. The size of the Development Area will vary depending on local market conditions and the number of shops to be developed.