What is the 'Minimum Performance Schedule' in relation to a Baya Bar Multi-Unit Development Agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
In certain circumstances, we will offer the right to enter into a Multi-Unit Development Agreement in the form attached as Exhibit C to this Disclosure Document (the "MUDA") to develop multiple Franchised Businesses to be located within a specifically described geographic area (the "Development Area"). We will determine the Development Area before you sign the MUDA and it will be included in the MUDA. You must establish the agreed upon number of Franchised Businesses within the Development Area according to a minimum performance schedule (the "Minimum Performance Schedule"), and you must sign a separate Franchise Agreement for each Shop established under the MUDA.
The Franchise Agreement for the first Shop developed under the MUDA will be in the form attached as Exhibit B to this Disclosure Document and we expect that you will sign the first Franchise Agreement at the same time you sign the MUDA. For each additional Shop developed under the MUDA, you must sign our then-current form of Franchise Agreement, which may be different from the form of Franchise Agreement included in this Disclosure Document. The size of the Development Area will vary depending upon local market conditions and the number of Shops to be developed.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 6–9)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a Minimum Performance Schedule is a requirement within a Multi-Unit Development Agreement (MUDA). If Baya Bar offers you a MUDA, it grants you the right to develop multiple Baya Bar Franchised Businesses within a specific geographic area, known as the Development Area. The Development Area will be determined before you sign the MUDA and will be included in the agreement.
The Minimum Performance Schedule dictates that you must establish the agreed-upon number of Baya Bar locations within the Development Area according to a set timeline. For each Baya Bar location established under the MUDA, you are also required to sign a separate Franchise Agreement.
The Franchise Agreement for the first Baya Bar Shop developed under the MUDA will be in the form attached as Exhibit B to the FDD, and Baya Bar expects that you will sign the first Franchise Agreement at the same time you sign the MUDA. For each additional Baya Bar Shop developed under the MUDA, you must sign their then-current form of Franchise Agreement, which may be different from the form of Franchise Agreement included in this Disclosure Document. The size of the Development Area will vary depending upon local market conditions and the number of Shops to be developed.