What is the effect of the Developer executing the Baya Bar agreement regarding prior agreements?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 No License to System and Marks.
Developer expressly acknowledges that this Agreement is not a Franchise Agreement and does not grant to Developer any right or license to operate a Baya Bar outlet, distribute any product or service, or use the Marks.
This Agreement sets forth conditions which, if fully satisfied, confer upon Developer the rights to enter a Franchise Agreement with Franchisor to establish one or more Baya Bar outlets in the Development Area only.
Developer's rights to open and operate a Baya Bar outlet and use the System and Marks shall be derived only through the execution of a Franchise Agreement for each Baya Bar outlet to be established in the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the Multi-Unit Development Agreement does not grant the developer the right to operate a Baya Bar outlet. The agreement solely sets forth the conditions that, if met, allow the developer to enter into a Franchise Agreement with Baya Bar to establish one or more outlets in a specific Development Area. The right to open and operate a Baya Bar and use its system and marks is only obtained through the execution of a separate Franchise Agreement for each outlet.
Specifically, the Multi-Unit Development Agreement is not a Franchise Agreement. It outlines the conditions under which the developer can later sign individual Franchise Agreements for each Baya Bar location they plan to open within their designated area. This agreement focuses on the development schedule and associated fees, but it does not give the developer the right to use Baya Bar's trademarks or operate a Baya Bar until a separate Franchise Agreement is in place for each location.
This distinction is important for prospective developers because it clarifies that signing the Multi-Unit Development Agreement is only the first step in securing the rights to open multiple Baya Bar locations. The developer must still meet all conditions and execute individual Franchise Agreements to actually operate each Baya Bar outlet. The development agreement ensures the developer can pursue opening multiple locations, but each location requires its own franchise agreement.