How much is the relocation fee for a Baya Bar franchise if relocation is permitted?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Such relocation, if permitted, shall be at Franchisee's sole expense, and subject to the following:
- 8.4.1 Franchisee shall construct and develop the new premises to conform to Franchisor's then-current specifications for design, appearance and leasehold improvements for new Franchised Businesses;
- 8.4.2 Franchisee shall remove any signs or other property from the original Franchised Business location which identified the original Franchise Business location as part of the System;
- 8.4.3 Franchisee agrees that, during the build-out, decorating and furnishing of the new location, and at Franchisor's sole and absolute discretion: (i) the term of this Agreement shall not be abated, and (ii) Franchisee shall remain liable to pay a minimum Royalty Fee and Brand Fund Contribution that is equal to the average amount paid by Franchisee during the four (4) calendar quarters immediately preceding the date that operations cease or the shorter period that Franchisee had been in business at the original Franchised Business location; and
- 8.4.4 Franchisor shall issue a revised Attachment 3, in accordance with Section 8.1.5, to reflect the address of the new Franchised Business location.
- 8.4.5 If a relocation site acceptable to Franchisor is not identified within ninety (90) days following Franchisee's request to relocate, Franchisor may terminate this Agreement.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Baya Bar does not specify a relocation fee. However, it does state that if relocation is permitted, it will be at the franchisee's sole expense. This means the franchisee is responsible for all costs associated with moving to a new location.
According to the FDD, if a Baya Bar franchisee is allowed to relocate, they must construct and develop the new premises to meet Baya Bar's current standards for design, appearance, and leasehold improvements. The franchisee also needs to remove any signs or property that identifies the original location as part of the Baya Bar system.
During the build-out of the new location, the franchisee must continue to pay a minimum Royalty Fee and Brand Fund Contribution. This amount will be equal to the average paid during the four calendar quarters immediately before operations ceased at the original location, or the shorter period if the franchisee was in business for less than four quarters. Additionally, Baya Bar will issue a revised Attachment 3 to reflect the new address. If a relocation site acceptable to Baya Bar is not identified within 90 days of the relocation request, Baya Bar can terminate the franchise agreement.
Prospective franchisees should inquire with Baya Bar about potential relocation costs and the process for obtaining approval for a new site. Understanding these costs and requirements is essential for making informed financial decisions about the franchise.