What is the Baya Bar franchisee's obligation regarding selecting the site for the shop?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Site Selection: You must assume all costs, liabilities, expenses and responsibility for locating, obtaining and developing a site for the Shop and for constructing and equipping the Shop at the accepted site. You will select the site for the Shop subject to our acceptance and using our site selection criteria. Before you lease or purchase the site for the Shop, you must locate a site that satisfies our site selection guidelines. If we deem it necessary we will conduct one onsite evaluation, but before we conduct the evaluation you must submit to us in the form we specify a description of the site, including evidence that the site satisfies our site selection guidelines, together with other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site. We have the right to approve deviations from our site selection standards based on the individual factors and components of a particular site.
You must have located and submitted to us, for our review, all information we require regarding the site you propose for your Shop no later than 90 days after you have signed the Franchise Agreement. We will have 30 days after we receive all required information and materials from you to accept or decline the proposed site as the location for your Baya Bar Shop. If we do not provide our specific acceptance of a proposed site, the site is deemed not accepted. We do not warrant or guarantee that your Shop will be successful at any site that we accept. Our acceptance only means that the site meets our minimum requirements for a Shop, subject to any deviation from our standards as we may permit.
We will provide you with our current written site selection guidelines and any other site selection counseling and assistance we think is advisable. Our criteria for site selection include: general location and neighborhood, proximity to competition, neighborhood demographics, traffic patterns, availability of parking, size of location, physical characteristics of existing buildings in the area, co-tenants in the shopping center or immediate area, condition of the premises and how much build-out or construction it will need, availability of utilities and the terms of the lease. We will use these and other factors in determining the
suitability of your proposed site for a Baya Bar Shop. You must provide us with a copy of the proposed lease for your Shop. We generally do not own the premises and lease it to you. We do not provide assistance with conforming the site to local ordinances and building codes, obtaining the permits and licenses for the construction and operation of the Shop, completing construction or remodeling, hiring and training your employees.
Once the location for your Shop has been determined, your Shop may not be relocated without our prior written consent. If you are not able to locate an acceptable site for your Shop within 180 days after we sign the Franchise Agreement, unless we agree to extend to you an additional amount of time, we may terminate your Franchise Agreement and the initial franchise fee will not be refunded.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–36)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchisee is responsible for all costs associated with site selection and development. This includes locating, obtaining, and developing the site for the Baya Bar shop, as well as constructing and equipping the shop at the chosen location. The franchisee must select a site that meets Baya Bar's site selection criteria, and the site selection is subject to Baya Bar's acceptance.
Before leasing or purchasing a site, the franchisee must ensure it aligns with Baya Bar's site selection guidelines. The franchisee needs to submit a detailed description of the site, evidence that it meets the guidelines, and any other required information, such as a letter of intent. Baya Bar may conduct an on-site evaluation if deemed necessary. Baya Bar retains the right to approve deviations from the standard site selection criteria based on the specific characteristics of the site.
The franchisee must submit all required site information to Baya Bar for review within 90 days of signing the Franchise Agreement. Baya Bar then has 30 days to either accept or reject the proposed site. Failure to obtain specific acceptance from Baya Bar within this timeframe means the site is considered not accepted. Baya Bar does not guarantee the success of the shop at any accepted site; their acceptance only indicates that the site meets the minimum requirements. If an acceptable site cannot be located within 180 days after signing the Franchise Agreement, Baya Bar may terminate the agreement, and the initial franchise fee will not be refunded, unless an extension is granted.
Baya Bar will provide the franchisee with written site selection guidelines and any additional counseling and assistance considered advisable. The criteria for site selection include factors such as the general location and neighborhood, proximity to competition, neighborhood demographics, traffic patterns, parking availability, size of the location, physical characteristics of existing buildings, co-tenants, condition of the premises, build-out or construction needs, availability of utilities, and lease terms. The franchisee must also provide a copy of the proposed lease for the shop. Baya Bar does not assist with conforming the site to local ordinances and building codes, obtaining permits and licenses, or completing construction or remodeling.