Where can I find more information about the initial franchise fee for a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT
| (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Initial Franchise Fee (1) | $35,000 | Lump Sum | When Franchise Agreement Signed | Us |
| 3 Months (2) | $6,500 | As arranged | As arranged | La |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–20)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the initial franchise fee is detailed in Item 5, as noted in Item 7. Specifically, Item 7 provides a table outlining the initial franchise fee, stating it is $35,000, payable in a lump sum when the Franchise Agreement is signed, and is paid to Baya Bar. This fee is part of the overall estimated initial investment for a single-unit franchise.
For multi-unit developers, the 2024 FDD states that the development fee is $62,500, paid as a lump sum upon signing the Multi-Unit Development Agreement, and is also paid to Baya Bar. This fee covers the development of three shops. If a developer commits to developing more than three Baya Bar shops, the development fee increases by $7,500 for each additional shop.
Item 7 also includes a table that lists other expenditures for the first shop, ranging from $174,415 to $435,400. The total estimated initial investment for a multi-unit developer, including the development fee and other expenditures for the first shop, ranges from $226,915 to $487,900. These figures are estimates and the actual costs may vary.
Prospective franchisees should carefully review Item 5 of the 2024 FDD for a comprehensive understanding of the initial franchise fee, including any conditions or obligations tied to it. Multi-unit developers should also consider the increasing development fees for each additional shop beyond the initial three.