What is the internal systems fee used for at Baya Bar?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.4 Internal Systems Fee.
Franchisor reserves the right to impose an internal systems fee upon Franchisee, in an amount that Franchisor reasonably determines, for the development, adoption and/or use of new or improved internal systems technology for the benefit of the System and Franchised Business, including but not limited to, assigned phone numbers and email addresses required for use in the Franchised Business, a franchise portal, benchmarking platform or other operations or
communications systems ("Internal Systems Fee"). In Franchisor's sole discretion, Franchisor may (i) increase the amount of the internal systems fees or (ii) replace the technology with different technology, developed by Franchisor or a third-party, and Franchisee shall pay the then-current fees for the replacement technology and for continuous access thereto. Franchisee shall pay the Internal Systems Fee in the manner and frequency as reasonably determined by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the internal systems fee is used for the development, adoption, and use of new or improved internal systems technology that benefits both the Baya Bar system and the franchised business. This includes, but is not limited to, assigned phone numbers and email addresses required for use in the Franchised Business, a franchise portal, benchmarking platform or other operations or communications systems.
Baya Bar retains the right to reasonably determine the amount of this fee. Additionally, Baya Bar has the discretion to increase the internal systems fees or replace the technology with different technology, whether developed by Baya Bar or a third party. The franchisee is then obligated to pay the current fees for the replacement technology to maintain continuous access.
The franchisee is required to pay the internal systems fee in the manner and frequency determined by Baya Bar. This means that the cost for new technologies and systems implemented to improve the franchise operations will be passed on to the franchisee, and the franchisee must be prepared to adopt and pay for these changes as they are introduced.