What is the franchisee acknowledging regarding the business risks associated with the Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a prospective developer acknowledges several key aspects regarding the business risks. The developer confirms they have conducted their own independent investigation into the financial, operational, and other facets of developing Baya Bar outlets. This indicates that Baya Bar encourages potential developers to perform due diligence and not solely rely on information provided by the franchisor.
Furthermore, unless explicitly stated in Baya Bar's Disclosure Document, the developer acknowledges that Baya Bar has not made any representations of performance, financial or otherwise, for the outlets to be developed. The developer waives any claims against Baya Bar for any business failure they may experience as a developer under the agreement. This highlights the risk that the developer bears the responsibility for the success or failure of their Baya Bar outlets.
Additionally, the developer acknowledges that Baya Bar expressly disclaims making any warranty or guarantee, express or implied, regarding the potential volume, profits, or success of the business venture. The developer confirms they have not received or relied upon any such warranty or guarantee. This underscores that Baya Bar does not assure any specific level of financial return or business success, and the developer's investment is subject to market risks and their own business acumen.