What is the Baya Bar franchisee's responsibility regarding obtaining licenses and permits before opening the Franchised Business?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
made a part hereof. Franchisee shall notify Franchisor within fifteen (15) days of any error or rejection of Attachment 3; otherwise, the Attachment 3 provided to Franchisee shall be deemed final.
8.2 Construction.
- 8.2.1 Franchisee shall be responsible for obtaining clearances that may be required by state or local laws, ordinances or regulations or that may be necessary as a result of any restrictive covenants relating to the Franchised Business premises. Prior to beginning the construction of the Franchised Business, Franchisee shall (a) obtain Franchisor's approval of Franchisee's architect and contractor, which approval shall not be unreasonably withheld, (b) adapt Franchisor's prototypical construction plans and specifications, provided to Franchisee, for the construction of the Franchised Business premises and submit such adapted plans and specifications to Franchisor for approval, (c) obtain all permits, licenses, insurance and certifications required for the lawful construction or remodeling and operation of the Franchised Business, including, but not limited to, permits for the installation of signage, and (d) certify in writing to Franchisor that all required approvals, clearances, permits, insurance and certifications have been obtained.
- 8.2.2 During the time of construction or remodeling, Franchisee shall provide Franchisor, or its designated representative, with such periodic reports regarding the progress in obtaining all licenses and permits; and of the construction or remodeling as may be reasonably requested by Franchisor
or its representative. In addition, Franchisor or its representative may make such on-site inspections as it may deem reasonably necessary to evaluate such progress. At least thirty (30) days prior to completion of the construction or remodeling, Franchisee shall notify Franchisor of the scheduled date for completion of construction or remodeling. Within a reasonable time after the date of completion of construction or remodeling, Franchisor or its representative may, at its option, conduct an inspection of the completed 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 is responsible for obtaining all necessary clearances, permits, licenses, insurance, and certifications required for the lawful construction, remodeling, and operation of the Franchised Business. This includes permits for signage installation. The franchisee must also get Baya Bar's approval for their architect and contractor, and adapt Baya Bar's prototypical construction plans for the premises, submitting these adapted plans for approval.
During construction or remodeling, the franchisee must provide Baya Bar with periodic reports on the progress of obtaining licenses and permits, as well as construction or remodeling progress. Baya Bar, or its representative, may conduct on-site inspections to evaluate this progress. The franchisee must notify Baya Bar at least thirty days before the scheduled completion of construction or remodeling.
The franchisee must certify in writing to Baya Bar that all required approvals, clearances, permits, insurance, and certifications have been obtained. The franchisee acknowledges that they cannot open the Franchised Business without written authorization from Baya Bar, which is conditional upon strict compliance with the Franchise Agreement.
This requirement places a significant administrative and financial burden on the franchisee, as they must navigate local regulations and ensure compliance to avoid delays or penalties. Failing to obtain the necessary permits and licenses can result in the inability to open the business, leading to potential financial losses. Prospective franchisees should carefully consider these responsibilities and associated costs when evaluating the Baya Bar franchise opportunity.