Is a Baya Bar franchisee required to acknowledge that other franchisees may operate under different agreements?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
5.1 Valid Exercise. Developer shall exercise the development rights granted hereunder only by entering into a separate Franchise Agreement with Franchisor for each Baya Bar outlet for which a development right is granted. Developer shall execute and deliver to Franchisor, concurrently with the execution and delivery of this Agreement, Franchisor's current form of Franchise Agreement for the first Baya Bar outlet to be established by Developer pursuant to the Mandatory Development Schedule. For each subsequent Baya Bar outlet to be established hereunder, Developer shall execute and deliver to Franchisor Franchisor's then-current form of Franchise Agreement, which shall be presented to Developer together with Franchisor's then-current Franchise Disclosure Document. The then-current form of Franchise Agreement may differ from the current form of Franchise Agreement; provided however, the initial franchise fee for each additional outlet shall be the applicable amount set forth in in Section 4.1 hereof. Further, Developer acknowledges and agrees that Developer shall not receive any initial training related to each additional Baya Bar outlet. Developer hereby waives all obligations by Franchisor to provide any training to Developer contained in each Franchise Agreement, other than the initial Franchise Agreement executed concurrently with this Agreement, by and between Franchisor and Developer. Developer hereby acknowledges and agrees that the training Developer receives pursuant
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, a developer acknowledges that for each subsequent Baya Bar outlet to be established, they will execute and deliver to Baya Bar the then-current form of the Franchise Agreement, which will be presented together with Baya Bar's then-current Franchise Disclosure Document. The then-current form of Franchise Agreement may differ from the current form of Franchise Agreement. This indicates that franchisees acknowledge that the terms of their agreements may vary over time and between different franchisees.
This acknowledgement is part of the process for multi-unit developers who are expanding their Baya Bar operations. It ensures that developers are aware that the franchise agreement they sign for each new location may not be identical to previous agreements. This could include changes in fees, operational requirements, or other terms.
By agreeing to this, the developer waives any claim against Baya Bar related to differences in franchise agreements. This protects Baya Bar from potential disputes arising from franchisees operating under different agreement terms. Prospective franchisees should carefully review the then-current Franchise Disclosure Document and Franchise Agreement for each new location to understand any changes and their implications.