What is the initial franchise fee for a single Baya Bar Shop?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 5 INITIAL FEES
Franchise Agreement: You must pay us an initial franchise fee of $35,000 for the right to establish a single Baya Bar Shop under a Franchise Agreement. This fee is used in part for working capital and in part for profit. If you are purchasing your second Shop, the initial franchise fee will be reduced to $30,000, and if you are purchasing your third or later Shop, the initial franchise fee will be reduced to $25,000. The initial franchise fee is imposed uniformly on all franchisees.
If (a) you fail to complete the pre-opening training program to our satisfaction, after having given you the opportunity to re-take our pre-opening training program at your expense or (b) we conclude, no more than ten days after you complete the pre-opening training program, that you do not have the ability to satisfactorily operate your Franchised Business, then we have the right to terminate your Franchise Agreement. If we terminate your Franchise Agreement, we will refund your initial franchise fee less any out-of-pocket costs we have incurred. You must sign any documents we require, including a confidentiality agreement and general release, before any money will be refunded to you. The initial franchise fee is not refundable
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the initial franchise fee for a single Baya Bar Shop is $35,000. This fee grants the franchisee the right to establish and operate a Baya Bar Shop under the terms of the Franchise Agreement. The FDD specifies that Baya Bar uses this fee for both working capital and profit.
Notably, the initial franchise fee is not entirely non-refundable. In specific circumstances, a refund of the initial franchise fee, less any out-of-pocket costs incurred by Baya Bar, may be available. These circumstances are limited to situations where the franchisee fails to complete the pre-opening training program satisfactorily, even after being given an opportunity to retake it, or if Baya Bar determines within ten days of completing the training program that the franchisee lacks the ability to operate the franchised business successfully. To receive a refund, the franchisee must sign required documents, including a confidentiality agreement and general release.
For franchisees interested in opening multiple Baya Bar locations, the initial franchise fee is reduced for the second and subsequent shops. The fee is reduced to $30,000 for the second shop and $25,000 for the third and any additional shops. This reduction incentivizes multi-unit development and rewards franchisees who commit to expanding the Baya Bar brand. These reduced fees apply under a Multi-Unit Development Agreement (MUDA).
It is important for prospective franchisees to understand the conditions under which the initial franchise fee may be refunded and to carefully consider their ability to meet Baya Bar's training and operational standards. Additionally, those interested in multi-unit development should review the terms of the MUDA and the associated fee structure.