What must a Baya Bar franchisee provide until a replacement General Manager is designated and trained?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4.3 If the General Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee shall promptly notify Franchisor and designate a replacement within thirty (30) days after the General Manager ceases to serve, such replacement being subject to the same qualifications required by this Agreement. Franchisee's replacement General Manager shall attend and satisfactorily complete the Initial Management Training Program, at Franchisee's sole cost and expense, including the payment of the thencurrent tuition. Until such replacement is designated and trained, Franchisee shall provide interim management of the Franchised Business, who shall act in accordance with the terms of this Agreement. Any failure to comply with the requirements of this Section shall be deemed a material event of default under this Agreement. Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until such General Manager is properly trained or certified in accordance with Franchisor's requirements, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by Franchisor, and shall be withdrawn from Franchisee's designated bank account in accordance with Section 6.1.4.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, if a General Manager is no longer able to serve, the franchisee must promptly notify Baya Bar and designate a qualified replacement within 30 days. This replacement must meet Baya Bar's standards and complete the Initial Management Training Program at the franchisee's expense, including tuition, travel, lodging, and meals.
Until a replacement General Manager is designated and trained, the Baya Bar franchisee is required to provide interim management of the franchised business. This interim management must operate in accordance with the terms of the Franchise Agreement.
If the franchisee fails to comply with these requirements, it will be considered a material default under the agreement. Baya Bar, at its discretion, may provide interim management support and charge the franchisee a fee, along with all associated costs for travel, lodging, meals, and other expenses, until a qualified General Manager is in place. These fees and costs will be withdrawn from the franchisee's designated bank account.
This clause ensures that each Baya Bar location has qualified management at all times, either through the franchisee's own interim measures or through support provided by the franchisor at the franchisee's expense. Prospective franchisees should be aware of these requirements and the potential costs associated with management transitions.