What is the exception to losing possession of the real property for a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.2.4 loses for any cause whatsoever the right of possession of the real property on which the Franchised Business is located; provided, however, that this provision shall not apply if through no fault of Franchisee, Franchisee loses right of possession and Franchisee applies within thirty (30) days after such event, for Franchisor's approval to relocate the Franchised Business (which approval shall not be unreasonably withheld) and Franchisee diligently pursues such relocation in accordance with Section 8.5.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, a franchisee may lose the right to possess the real property where their Baya Bar is located, which typically constitutes a default allowing Baya Bar to terminate the franchise agreement. However, there is an exception to this rule.
Specifically, if the loss of possession occurs through no fault of the franchisee, and the franchisee applies within thirty (30) days for Baya Bar's approval to relocate the Franchised Business, and diligently pursues such relocation, this will not automatically trigger a termination. Baya Bar's approval for relocation cannot be unreasonably withheld.
This exception provides a Baya Bar franchisee some protection in situations where they lose their location due to circumstances beyond their control, such as eminent domain or unexpected termination of a lease by the landlord. However, it is crucial that the franchisee acts quickly and seeks approval for relocation to maintain their franchise rights.