What is a Baya Bar franchisee prohibited from doing regarding modifications required by Article 9?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.5 No Liability/Waiver of Claims. Franchisor shall not be liable to Franchisee for any expenses, losses or damages sustained by Franchisee as a result of any of the modifications, including Trade Dress Modifications, required by this Article 9. Franchisee hereby covenants not to commence or join in any litigation or other proceeding against Franchisor or any third party, complaining of any such or seeking expenses, losses or damages caused thereby. Further, Franchisee expressly waives any claims, demands or damages arising from or related to the modifications contemplated by this Article 9, including, without limitation, any claim of breach of contract, breach of fiduciary duty, fraud, and/or breach of the implied covenant of good faith and fair dealing.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, franchisees are prohibited from commencing or joining any litigation or other proceeding against Baya Bar or any third party regarding modifications, including Trade Dress Modifications, required by Article 9. This also includes seeking expenses, losses, or damages caused by these modifications.
Furthermore, Baya Bar franchisees expressly waive any claims, demands, or damages arising from or related to the modifications contemplated by Article 9. This waiver includes, but is not limited to, any claim of breach of contract, breach of fiduciary duty, fraud, and/or breach of the implied covenant of good faith and fair dealing.
In practical terms, this means that if Baya Bar mandates changes to the franchise's appearance or operations, the franchisee cannot sue Baya Bar to recover costs or damages incurred as a result of these changes. This is a significant restriction, as franchisees are generally responsible for the expenses associated with these modifications. Prospective franchisees should carefully consider this clause and its potential financial implications.