factual

What must Baya Bar franchisees do regarding Shop construction plans?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

You must obtain our acceptance of the site for the Shop before you acquire the site. You must also obtain our acceptance of any contract of sale or lease for the Shop before you sign the contract or lease. We have the right to require you to use a real estate broker we designate to assist you in finding a location for your Shop. You must provide us with a copy of the fully signed lease for the Shop premises. We may require you and your landlord to sign a Collateral Assignment of Lease which permits us to assume your lease in certain circumstances including the termination or expiration of your Franchise Agreement (Attachment B to the Franchise Agreement).

Your Shop must be constructed according to plans that we have approved. We will provide you with sample plans and/or our specifications for a Baya Bar Shop, and we have the right to designate the architect/designer that you must use. We also have the right to approve the contractor you select. You must arrange for construction plans to be created that incorporate our requirements into the size and shape of the approved site for your Shop. You may not use the plans or begin building out your Shop until we have approved the construction plans, and any changes to the construction plans must also be approved by us before the change may be implemented. Our review is not meant to assess compliance with any applicable laws, regulations or building codes. Our review is only to verify that the construction plans accurately present our trade dress, the Marks and meet our specifications. We have the right to inspect your Shop while it is being constructed. You may not open your Shop for business without our approval. You must certify to us that your Shop has been constructed in compliance with the Americans with Disabilities Act.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, franchisees must adhere to specific procedures and requirements regarding the construction of their shop. Before acquiring a site, franchisees must obtain Baya Bar's acceptance of the location. Similarly, any contract of sale or lease must be approved by Baya Bar before it is signed. Baya Bar retains the right to designate a real estate broker to assist in finding a suitable location. A copy of the fully signed lease must be provided to Baya Bar, and the franchisor may require both the franchisee and the landlord to sign a Collateral Assignment of Lease, allowing Baya Bar to assume the lease under certain conditions, such as the termination or expiration of the Franchise Agreement. These stipulations ensure that Baya Bar maintains control over site selection and lease terms, protecting their brand and interests.

The construction of the Baya Bar shop must follow approved plans. Baya Bar will provide sample plans or specifications, and they have the right to designate the architect or designer that the franchisee must use. Additionally, Baya Bar reserves the right to approve the contractor selected by the franchisee. Franchisees are responsible for creating construction plans that incorporate Baya Bar's requirements into the approved site's size and shape. The plans cannot be used, nor can construction begin, until Baya Bar has approved them. Any changes to the construction plans also require Baya Bar's approval before implementation.

Baya Bar's review of the construction plans is focused on verifying that the plans accurately represent their trade dress, marks, and specifications, rather than ensuring compliance with laws, regulations, or building codes. Baya Bar has the right to inspect the shop during construction and the franchisee cannot open for business without Baya Bar's approval. Furthermore, franchisees must certify that the shop has been constructed in compliance with the Americans with Disabilities Act. These measures ensure that each Baya Bar location adheres to the brand's standards and legal requirements, maintaining consistency across all franchise locations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.