What is Baya Bar's obligation regarding holding a meeting of franchisees?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
uch as "Franchises Available" and our website address and phone number.
Advisory Council: We may, in our discretion, form an advisory council to work with us to improve the System, the products offered by Baya Bar Shops, advertising conducted by the Fund, and any other
matters that we deem appropriate. If an advisory council is formed, it will act solely in an advisory capacity, and will not have decision making authority. We will have the right to form, change, merge or dissolve any advisory council. We may develop by-laws for any advisory council.
If formed, an advisory council will be comprised of our representatives and franchisee representatives and all franchisees are required to participate in council-related activities and meetings.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–36)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar may, at its discretion, form an advisory council. This council would work with Baya Bar to improve the Baya Bar system, the products offered, advertising, and other matters deemed appropriate by Baya Bar. The advisory council would serve solely in an advisory capacity and would not have any decision-making authority. Baya Bar retains the right to form, change, merge, or dissolve any advisory council and may develop bylaws for such a council.
If an advisory council is formed, it will consist of representatives from Baya Bar and franchisee representatives. All franchisees are required to participate in council-related activities and meetings. Franchisees who participate on the advisory council are responsible for covering their own expenses, such as travel and living costs, to attend council meetings.
This means that Baya Bar is not obligated to form an advisory council or hold regular franchisee meetings. However, if Baya Bar chooses to establish a council, franchisees are required to participate, but they must bear the costs associated with their participation. This is a fairly common arrangement in franchising, where franchisors often seek franchisee input through advisory councils while retaining ultimate decision-making authority.