What documentation relating to the offer can the Baya Bar Franchisor require from the Developer?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
nt using a newly formed entity, such as a limited liability company, corporation or partnership, for the sole purpose of entering into a Franchise Agreement and operating the Baya Bar café outlet pursuant thereto, provided that Developer shall also personally sign such Franchise Agreement as a principal.
5. EXERCISE OF DEVELOPMENT RIGHTS.
5.1 Valid Exercise. Developer shall exercise the development rights granted hereunder only by entering into a separate Franchise Agreement with Franchisor for each Baya Bar outlet for which a development right is granted. Developer shall execute and deliver to Franchisor, concurrently with the execution and delivery of this Agreement, Franchisor's current form of Franchise Agreement for the first Baya Bar outlet to be established by Developer pursuant to the Mandatory Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a Developer, upon exercising development rights, must enter into a separate Franchise Agreement with Baya Bar for each outlet. Concurrently with signing the Multi-Unit Development Agreement, the Developer must provide Baya Bar with the current Franchise Agreement for the first Baya Bar outlet. For each subsequent outlet, the Developer must execute and deliver Baya Bar's then-current form of Franchise Agreement, which will be presented alongside Baya Bar's then-current Franchise Disclosure Document.
Furthermore, if the Developer intends to transfer any rights under the agreement, they must provide all proposed transfer documents to Baya Bar for review at least 30 days before closing the transfer. This allows Baya Bar to assess the proposed transfer and ensure it aligns with their standards and policies.
Additionally, the Developer Acknowledgment Statement includes several acknowledgements that the developer must initial, confirming they have conducted their own investigation, agree that no claims of success or failure have been made to them, have no knowledge of any representations contrary to the agreement, and acknowledge that they have not relied on any warranty or guarantee from Baya Bar regarding potential volume, profits, or success.