factual

What happens if a Baya Bar General Manager cannot serve or meet the requirements?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 11.4.3 If the General Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee shall promptly notify Franchisor and designate a replacement within thirty (30) days after the General Manager ceases to serve, such replacement being subject to the same qualifications required by this Agreement. Franchisee's replacement General Manager shall attend and satisfactorily complete the Initial Management Training Program, at Franchisee's sole cost and expense, including the payment of the thencurrent tuition. Until such replacement is designated and trained, Franchisee shall provide interim management of the Franchised Business, who shall act in accordance with the terms of this Agreement. Any failure to comply with the requirements of this Section shall be deemed a material event of default under this Agreement. Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until such General Manager is properly trained or certified in accordance with Franchisor's requirements, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by Franchisor, and shall be withdrawn from Franchisee's designated bank account in accordance with Section 6.1.4.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 42–43)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, the franchisee must inform Baya Bar if the General Manager can no longer fulfill their duties or no longer meets the requirements outlined in the agreement. The franchisee then has 30 days to find a replacement General Manager who meets the same qualifications. This replacement must also complete the Initial Management Training Program, which the franchisee will pay for, including tuition.

During the period before a replacement is found and trained, the franchisee is responsible for providing interim management that adheres to the terms of the agreement. Failure to comply with these requirements is considered a material breach of the agreement.

Baya Bar, at its discretion, can provide interim management support until a qualified General Manager is in place. The franchisee will be charged a fee for this support, equivalent to the then-current interim management support fee, in addition to all travel, lodging, meals, and other related expenses incurred by Baya Bar. These fees will be automatically withdrawn from the franchisee's designated bank account.

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.