What document related to the lease must be included in any lease executed for a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
A copy of all proposed agreements regarding the franchise offering are included in this Disclosure Document, as follows:
- Exhibit B The Franchise Agreement and all attachments to it (Marks, Territory, General Release, ACH Authorization, Collateral Assignment of Lease, Statement of Ownership Interests in Franchisee, Telephone, Internet, and Social Media Listing Assignment Agreements, Spousal Guaranty, and Confidentiality and Non-Compete Agreement).
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, a Collateral Assignment of Lease must be included in any lease executed for a Baya Bar franchise. This document is listed as an attachment to the Franchise Agreement in Exhibit B of the FDD.
The Collateral Assignment of Lease essentially gives Baya Bar Franchise Systems, LLC certain rights regarding the franchisee's lease. This protects Baya Bar's interests in the event a franchisee defaults on their lease or the Franchise Agreement is terminated.
Specifically, the landlord agrees to notify Baya Bar of any franchisee defaults, allowing Baya Bar the option to cure the default within 30 days. The landlord also consents to Baya Bar taking possession of the premises and assuming the lease, provided Baya Bar cures any non-monetary defaults. Furthermore, Baya Bar has the right to further assign the lease to another party reasonably acceptable to the landlord. Finally, Baya Bar is permitted to enter the premises to de-identify it as a Baya Bar outlet if the franchisee fails to do so after termination of the Franchise Agreement or lease, and Baya Bar must repair any damage caused by this de-identification.