What is the franchisee acknowledging about the dependence of the Baya Bar venture's success?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Y TO ANY CLAIMS ARISING FROM REPRESENTATIONS MADE BY FRANCHISOR IN FRANCHISOR'S FRANCHISE DISCLOSURE DOCUMENT RECEIVED BY FRANCHISEE.
| | | Initial | |--------------------------|-----------------|---------| | Acknowledged this day of | | | | PRINCIPAL: | FRANCHISEE: | | | Signature | By: | | | Name: | Name: Title: | |
EXHIBIT H-2
DEVELOPER ACKNOWLEDGEMENT STATEMENT
Developer hereby acknowledges the following:
- Developer has conducted an independent investigation of all aspects relating to the financial, operational and other aspects of the business of developing the Baya Bar outlets contemplated hereunder. Developer further acknowledges that, except as may be set forth in Franchisor's Disclosure Document, no representations of performance (financial or otherwise) for the Baya Bar outlets to be developed hereunder has been made to Developer by Franchisor and Developer hereby waives any claim against Franchisor for any business failure Developer may experience as a developer under this Agreement.
_____ Initial
- Developer agrees that no claims of success or failure have been made to him or her prior to signing this Agreement and that he/she understands all the terms and conditions of this Agreement. Developer further acknowledges that this Agreement contains all oral and written agreements, representations and arrangements between the parties hereto, and any rights which the respective parties hereto may have had under any other previous contracts are hereby cancelled and terminated, and that this Agreement cannot be changed or terminated orally; provided, however, nothing in this Multi-Unit Development Agreement or in any related agreement is intended to disclaim the representations made to Developer in Franchisor's Franchise Disclosure Document.
_____ Initial
- Developer has no knowledge of any representations by Franchisor or its officers, directors, shareholders, employees, sales representatives, agents or servants, about the business contemplated by this Agreement that are contrary to the terms of this Agreement or the documents incorporated herein. Developer acknowledges that no representations or warranties are made or implied, except as specifically set forth herein. Developer represents, as an inducement to Franchisor's entry into this Agreement, that Developer has made no misrepresentations in obtaining this Agreement.
_____ Initial
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a developer acknowledges several key aspects regarding the success of their Baya Bar venture. The developer confirms they have conducted their own independent investigation into the financial, operational, and other business aspects of developing Baya Bar outlets. This indicates that the franchisee is responsible for doing their due diligence and not solely relying on the franchisor's information.
Furthermore, the developer acknowledges that, except as stated in the Franchise Disclosure Document, the franchisor has not made any performance representations (financial or otherwise) for the Baya Bar outlets. The developer waives any claims against the franchisor for business failure as a developer under the agreement. This highlights that Baya Bar does not guarantee financial success, and the franchisee assumes the risk of potential business failure.
Additionally, the developer acknowledges that they have not received or relied upon any warranty or guarantee, express or implied, regarding the potential volume, profits, or success of the Baya Bar business venture. This reinforces the understanding that the success of the Baya Bar business depends on the developer's efforts and market conditions, rather than any assurances from the franchisor. The developer is taking on the risk of the business venture and acknowledging that success is not guaranteed by Baya Bar.