factual

What is the Baya Bar franchisee's responsibility regarding obtaining a site that satisfies the site selection guidelines?

Baya_Bar Franchise · 2024 FDD

Answer 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

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 bears the primary responsibility for site selection. Specifically, the franchisee must cover all costs, liabilities, and expenses associated with locating, securing, and developing the site for their Baya Bar shop. This includes construction and equipping the shop at the chosen location.

The franchisee is required to select a site that aligns with Baya Bar's site selection criteria, and the franchisor's acceptance is mandatory. Before finalizing the lease or purchase of the site, the franchisee must ensure that the location adheres to Baya Bar's site selection guidelines. The franchisee needs to submit a detailed description of the site, evidence that it meets the franchisor's guidelines, and any other required information, such as a letter of intent, to demonstrate the likelihood of securing the site.

Baya Bar may conduct an on-site evaluation if deemed necessary. 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 receive specific acceptance from Baya Bar within this timeframe means the site is considered not accepted. While Baya Bar provides written site selection guidelines and assistance, their acceptance of a site does not guarantee the shop's success, but only confirms that the site meets their minimum requirements.

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.