How long does Baya Bar Franchisor have to respond to a franchisee's site submission?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
and materials to consent, in its sole and absolute discretion, to the proposed site as the location for the Franchised Business. If Franchisor fails to respond to Franchisee's submission within ten (10) business days, such proposed site shall be deemed "disapproved". No site may be used for the location of the Franchised Business unless it is consented to in writing by Franchisor.
- 8.1.3 Within sixty (60) days after Franchisor has consented to the site for the Franchised Business (or such longer period as Franchisor consents to in writing), Franchisee shall execute a lease therefor and obtain physical possession of the premises. Any lease must include Franchisor's Collateral Assignment of Lease Agreement, a copy of which is attached hereto as Attachment 6. Failure by Franchisee to acquire the site for the Franchised Business within the time and in the manner required herein shall constitute a material event of default under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchisor has ten business days to respond to a franchisee's site submission. This is a crucial step in the franchise process, as the franchisee needs the franchisor's approval to secure a location for their Baya Bar business.
If Baya Bar fails to respond within the ten-business-day timeframe, the proposed site is automatically considered "disapproved." This means the franchisee cannot proceed with that location unless they receive written consent from Baya Bar at a later date. This clause protects both parties by ensuring timely decisions and preventing the use of unsuitable locations.
Following site approval, the franchisee has sixty days (or longer if agreed upon in writing with Baya Bar) to execute a lease and take possession of the premises. The lease must include Baya Bar's Collateral Assignment of Lease Agreement. Failure to secure the site within the specified timeframe constitutes a material breach of the franchise agreement. This timeline is important for franchisees to be aware of, as delays could lead to complications and potential default under the agreement.