factual

For a Baya Bar franchise, are franchisees required to purchase or lease fixtures, furnishings, and equipment?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

D SERVICES**

Standards and Specifications

You must purchase or lease and install all fixtures, furnishings, equipment (including computer hardware, software and point of sale system), décor items, signs and related items we require, all of which must conform to the standards and specifications stated in our Manual or otherwise in writing, unless you have first obtained our written consent to do otherwise. You may not install or permit to be installed on the Shop premises any fixtures, furnishings, equipment, décor items, signs, games, vending machines or other items without our written consent or that do not comply with our specifications.

To make sure that the highest degree of quality and service is maintained, you must operate the Shop in strict conformity with the methods, standards and specifications that we prescribe in the Manual or otherwise in writing. You must maintain in sufficient supply and use and sell at all times only those food and beverage items, ingredients, products, materials, supplies and paper goods that meet our standards and specifications. All menu items must be prepared in accordance with the recipes and procedures specified in the Manual or other written materials. You must not deviate from these standards and specifications by

the use or offer of non-conforming items, or differing amounts of any items, without obtaining our written consent first. We can, and expect to, modify our standards and specifications as we deem necessary. We will provide you notice in the Manual or otherwise in writing (such as via email) of any changes in our standards and/or specifications.

You must permit us or our agents, during normal business hours, to remove a reasonable number of samples of food or non-food items from your inventory or from the Shop free of charge for testing by us or by an independent laboratory to determine whether the samples meet our then-current standards and specifications. In addition to any other remedies we may have, we may require you to pay our then-current fee for the inspection and reimburse our costs for the testing if we have not previously approved the supplier of the item or if the sample fails to conform to our specifications.

Approved Suppliers

You must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment (including point of sale system and communication systems), and other products used or offered for sale at the Shop solely from suppliers who demonstrate, to our continuing reasonable satisfaction, the ability to meet our then-current standards or in accordance with our standards and specifications. A complete list of our approved products and suppliers will be included in the Manual and is subject to change over time. We will provide you notice in the Manual or otherwise in writing (such as via email) of any changes to the lists of approved products and approved suppliers.

Vuda Media S Corp is our designated supplier for web and social media management and branding. Vuda Media S Corp is located at 8701 Shore Road, Brooklyn, New York, 11209, and 917-232-8239.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, franchisees are required to purchase or lease and install all fixtures, furnishings, and equipment. This includes computer hardware, software, and point of sale systems. These items must conform to the standards and specifications outlined in Baya Bar's manual or in writing, unless the franchisee obtains written consent to do otherwise. Franchisees are prohibited from installing any fixtures, furnishings, equipment, décor items, signs, games, vending machines, or other items on the shop premises without written consent from Baya Bar or if they do not comply with Baya Bar's specifications.

To ensure quality and service standards, Baya Bar franchisees must operate their shops in strict accordance with the methods, standards, and specifications prescribed in the manual or in writing. This extends to maintaining sufficient supplies and exclusively using and selling food and beverage items, ingredients, products, materials, supplies, and paper goods that meet Baya Bar's standards. All menu items must be prepared according to the recipes and procedures specified in the manual or other written materials. Franchisees cannot deviate from these standards by using non-conforming items or differing amounts of items without prior written consent.

Baya Bar retains the right to modify its standards and specifications as deemed necessary, providing notice of any changes in the manual or in writing, such as via email. Baya Bar or its agents are permitted to remove samples of food or non-food items from the franchisee's inventory or shop free of charge for testing to ensure compliance with current standards. If the supplier of an item has not been previously approved or if the sample fails to meet specifications, Baya Bar may require the franchisee to pay the inspection fee and reimburse the costs for testing. Franchisees must also purchase cold pressed juice, coconut flakes, Nutella, granola, coconut milk, coconut water, peanut and almond butter, cacao nibs, chia and flax seeds, goji berries, bee pollen, milk products, hemp granola, cookie butter and frozen fruits from Baya Bar's approved suppliers.

Baya Bar estimates that purchases from them or approved suppliers, or that must conform to their specifications, will represent approximately 54% to 60% of the franchisee's total purchases in establishing the franchised business, and approximately 60% to 80% of their total purchases in the continuing operation of the shop. For the fiscal year ended December 31, 2023, Baya Bar derived $19,447.96 from franchisee-required purchases, which comprised 3% of their total revenue of $746,503.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.