What does Baya Bar expressly disclaim regarding the potential of the business venture?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- Franchisor expressly disclaims the making of, and Developer acknowledges that it has not received or relied upon, any warranty or guarantee, express or implied, as to the potential volume, profits or success of the business venture contemplated by this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar explicitly disclaims any warranties or guarantees, whether expressed or implied, regarding the potential volume, profits, or overall success of the business venture. This disclaimer is part of the Developer Acknowledgement Statement that the developer must sign.
This means that prospective Baya Bar developers should not rely on any assurances from Baya Bar about how well their business will perform. It is up to the developer to conduct their own independent investigation and assessment of the potential risks and rewards of the franchise opportunity. This includes analyzing market conditions, assessing competition, and carefully reviewing the financial performance representations (if any) provided in Item 19 of the FDD.
This type of disclaimer is standard practice in franchising. Franchisors typically avoid making specific promises about future performance because many factors that influence a franchisee's success are outside the franchisor's control. These factors include the franchisee's management skills, local market conditions, and the franchisee's ability to follow the Baya Bar system. By including this disclaimer, Baya Bar aims to protect itself from potential legal claims if a developer's business does not meet their expectations.
Before signing the agreement, a prospective Baya Bar developer should carefully consider this disclaimer and conduct thorough due diligence. They should consult with their own legal and financial advisors to fully understand the risks involved and make an informed investment decision. The developer should also initial the acknowledgement, confirming they understand and accept this disclaimer.