When must the franchisee pay the initial franchise fee to Baya Bar?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
uccessor franchise agreement for this Franchise as a result of a decision to withdraw from a marketing area or the Territory in which Franchisee's Franchised Business is located.
6. FEES
- 6.1 Initial Franchise and Royalty Fee. As part of the consideration for the right to operate the Franchise granted herein, Franchisee shall pay to Franchisor the following fees:
- 6.1.1 Initial Franchise Fee. Franchisee acknowledges and agrees that the grant of this Franchise and the rights and obligations of the parties under this Agreement constitute the sole and only consideration for the initial franchise fee of Thirty-Five Thousand Dollars ($35,000.00) (the "Initial Fee"). **The Initial Fee is fully earned at the time this Franchise Agreement is signed and is not r
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the initial franchise fee of $35,000 is due upon the franchisee's execution of the Franchise Agreement. Baya Bar states that the grant of the franchise and the rights and obligations outlined in the agreement are the sole consideration for this initial fee.
Baya Bar emphasizes that this initial franchise fee is considered fully earned at the time the Franchise Agreement is signed. This means that Baya Bar is entitled to keep the fee once the agreement is in place.
Furthermore, the initial fee is generally non-refundable, except under the specific conditions outlined in Section 7.2 of the Franchise Agreement. Prospective franchisees should carefully review Section 7.2 to understand the limited circumstances under which a refund might be possible, as it is uncommon for franchise fees to be refundable.