What is the Baya Bar franchisee's obligation to diligently pursue reconstruction or relocation after a casualty?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
s, obtain all licenses and permits before opening, or open the Franchised Business within the time and in the manner specified in Article 8.
- 17.2.2 falsifies any report required to be furnished Franchisor hereunder;
- 17.2.3 ceases to operate the Franchised Business for a period of five (5) days or more; provided, however, that this provision shall not apply if through no fault of Franchisee, the premises are damaged or destroyed by a casualty and Franchisee applies within thirty (30) days after such event, for Franchisor's approval to relocate or reconstruct the premises (which approval shall not be unreasonably withheld) and Franchisee diligently pursues such reconstruction or relocation.
- 17.2.4 loses for any cause whatsoever the right of possession of the real property on which the Franchised Business is located;
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, a franchisee must apply for the Franchisor's approval to relocate or reconstruct the premises within thirty (30) days of the damage or destruction of the premises due to a casualty. The approval from Baya Bar shall not be unreasonably withheld. The franchisee must then diligently pursue such reconstruction or relocation.
If the franchisee's premises are damaged or destroyed by a casualty, the franchisee will not be in material default if they apply for Baya Bar's approval to relocate or reconstruct the premises within 30 days of the event and diligently pursue such reconstruction or relocation. However, if the franchisee fails to restore the Franchised Business location to full operation within a reasonable period of time, but not more than 120 days from the date the Franchised Business location is rendered inoperable by any casualty (which may be extended by Baya Bar in its reasonable discretion), it can be considered a default.
This means that a Baya Bar franchisee needs to act quickly and decisively after a casualty event to maintain good standing with the franchisor. They must communicate with Baya Bar within 30 days, seek approval for their plans, and then actively work towards either rebuilding at the original site or finding a new location. The franchisee also has a limited time of 120 days to restore the Franchised Business location to full operation.