What is the initial term length of the Baya Bar franchise agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
itory. Franchisee agrees that such implementation of Franchisor's rights pursuant to this Section 3.2 is deemed not to impair or injure Franchisee's rights pursuant to Section 2 hereof.
- 4. TERM. Unless terminated earlier in accordance with the terms set forth in this Agreement, this Agreement and the Franchise granted hereunder shall commence upon the Effective Date set forth above, and terminate on the date that is ten (10) years following the Opening Date, as defined in Section 8 hereof (the "Term").
- 5. SUCCESSOR OPTIONS. Subject to the terms and conditions of this Agreement, Franchisee shall have the right, following the expiration of the Term hereof, to enter into a new franchise agreement and other agreements then customarily employed by Franchisor
and in the form then generally being offered to prospective franchisees in the state in which the Territory is located (the "Successor Franchise Agreement") for two (2) additional terms of five (5) years. The term of each such Successor Franchise Agreement shall commence upon the date of expi
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, the initial term of the franchise agreement is 10 years. The agreement commences on the effective date and terminates 10 years following the opening date of the Baya Bar location.
Following the initial 10-year term, a Baya Bar franchisee has the option to enter into a new franchise agreement, called the Successor Franchise Agreement, for two additional terms of 5 years each. To do so, the franchisee must meet certain conditions and pay a Successor Agreement Fee of $3,500 per term.
It's important for prospective franchisees to understand the term length as it dictates the period during which they can operate under the Baya Bar brand. Renewal is not guaranteed and depends on meeting specific criteria and paying the required fees. This is a fairly standard term length in the franchise industry.