What form of Franchise Agreement does a developer execute for the first Baya Bar outlet?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
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. For each subsequent Baya Bar outlet to be established hereunder, Developer shall execute and deliver to Franchisor Franchisor's then-current form of Franchise Agreement, which shall be presented to Developer together with Franchisor's then-current Franchise Disclosure Document. The then-current form of Franchise Agreement may differ from the current form of Franchise Agreement; provided however, the initial franchise fee for each additional outlet shall be the applicable amount set forth in in Section 4.1 hereof. Further, Developer acknowledges and agrees that Developer shall not receive any initial training related to each additional Baya Bar outlet. Developer hereby waives all obligations by Franchisor to provide any training to Developer contained in each Franchise Agreement, other than the initial Franchise Agreement executed concurrently with this Agreement, by and between Franchisor and Developer. Developer hereby acknowledges and agrees that the training Developer receives pursuant
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a developer must enter into a separate Franchise Agreement with Baya Bar for each outlet they plan to establish. Specifically, concurrent with the execution of the Multi-Unit Development Agreement, the developer will execute Baya Bar's current form of Franchise Agreement for the first Baya Bar outlet to be established under the Mandatory Development Schedule.
For each subsequent Baya Bar outlet, the developer will execute Baya Bar's then-current form of Franchise Agreement, which may differ from the initial form. However, the initial franchise fee for each additional outlet will be the amount set forth in Section 4.1 of the agreement. The developer will not receive any initial training related to these additional Baya Bar outlets, as the training received under the initial Franchise Agreement is deemed sufficient.
Upon signing the Multi-Unit Development Agreement and the initial Franchise Agreement, and provided all conditions are met, the developer must execute an additional Franchise Agreement for the second Baya Bar outlet upon the execution of a lease. This process continues for each subsequent outlet under the Mandatory Development Schedule, ensuring that each Baya Bar location is governed by its own Franchise Agreement.