What is the Baya Bar franchisee's obligation to diligently pursue relocation after losing right of possession?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.2.4 loses for any cause whatsoever the right of possession of the real property on which the Franchised Business is located; provided, however, that this provision shall not apply if through no fault of Franchisee, Franchisee loses right of possession and Franchisee applies within thirty (30) days after such event, for Franchisor's approval to relocate the Franchised Business (which approval shall not be unreasonably withheld) and Franchisee diligently pursues such relocation in accordance with Section 8.5.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, if a franchisee loses the right of possession of their location through no fault of their own, Baya Bar will allow the franchisee to relocate the business. To be eligible, the franchisee must apply for Baya Bar's approval to relocate the Franchised Business within thirty (30) days of losing possession.
Baya Bar's approval for relocation will not be unreasonably withheld. The franchisee must then diligently pursue such relocation in accordance with Section 8.5 of the franchise agreement.
Failure to apply for relocation approval within 30 days or to diligently pursue relocation following approval will result in the termination of the franchise agreement without an opportunity to cure the default.