What Franchise Disclosure Document is provided to the developer for each subsequent 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 who signs a Multi-Unit Development Agreement must enter into a separate Franchise Agreement with Baya Bar for each outlet they plan to open. For each Baya Bar outlet established after the first, the developer will receive Baya Bar's then-current Franchise Disclosure Document along with the then-current form of the Franchise Agreement. The Franchise Agreement may differ from the initial agreement.
However, the initial franchise fee for each additional outlet will adhere to the amounts outlined in Section 4.1 of the agreement. The developer will not receive any initial training for these additional Baya Bar outlets, as the training from the initial Franchise Agreement is deemed sufficient for operating all subsequent locations within the Development Area.
This means that while the core terms of the franchise agreement might evolve over time, the financial commitment for franchise fees remains consistent. A prospective developer should carefully review Section 4.1 to understand the fee structure for additional outlets and factor in the lack of additional training when assessing their operational capabilities.