What is the franchisee's responsibility regarding consulting with professionals when selecting a site for their Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
8.1.1 Franchisee assumes all cost, liability, expense and responsibility for obtaining and developing a site for the Franchised Business within the Territory and for constructing and equipping the Franchised Business at such site. Franchisee shall not make any binding commitment to a prospective vendor or lessor of real estate with respect to a site for the Franchised Business unless the site location is approved by Franchisor. While Franchisor may render assistance to Franchisee in the selection of a site, as set forth in Section 8.1.2 below, Franchisee has sole responsibility for procuring and developing a site for the Franchised Business and Franchisee may and is encouraged to consult with professionals of Franchisee's choosing in discharging such responsibility. Franchisee acknowledges that Franchisor's approval of a prospective site location is permission only, does not constitute a representation, promise, warranty or guarantee, express or implied, by Franchisor that the Franchised Business operated at that site will be profitable or otherwise successful, and cannot, and does not, create a liability for Franchisor. Franchisee releases Franchisor from any claims over the site location selection and evaluation by Franchisor, and Franchisee shall hold Franchisor harmless with respect to Franchisee's selection of the site for the Franchisee's Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchisee bears the primary responsibility for securing and developing a site for their Baya Bar franchise. While Baya Bar may offer assistance in site selection, the franchisee is ultimately accountable for all costs, liabilities, expenses, and responsibilities associated with obtaining and developing the site within their designated territory, as well as for constructing and equipping the Baya Bar at that location. The franchisee cannot make any binding commitments to vendors or lessors without Baya Bar's approval of the site.
The FDD encourages franchisees to seek advice from professionals of their choosing during the site selection process. This suggests that Baya Bar recognizes the importance of expert guidance in making informed decisions about location, construction, and equipping the franchise. However, the final decision rests with the franchisee, who is expected to conduct thorough due diligence and consider professional advice to ensure the site's suitability for their Baya Bar business.
Baya Bar's approval of a site should be regarded as permission only and not as a guarantee of profitability or success at that location. The franchisee acknowledges that Baya Bar is released from any claims related to site selection and evaluation. This underscores the importance of the franchisee's independent assessment and consultation with professionals to mitigate risks and ensure the chosen site aligns with their business goals. Franchisees must hold Baya Bar harmless with respect to their site selection.