factual

What are Baya Bar's options for interim management after the death or permanent disability of a franchisee?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

Immediately after the death or permanent disability of such person, or while the Franchise is owned by an executor, administrator, guardian, personal representative or trustee of that person, the Franchised Business shall be supervised by an interim successor manager satisfactory to Franchisor, or Franchisor, in its sole discretion, may provide interim management at Franchisor's then-current interim management support fee, pending transfer of the Franchise to the deceased or disabled individual's lawful heirs or successors.

Source: Item 22 — CONTRACTS (FDD page 56)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee or one of their principals, the franchise must be transferred to a Franchisor-approved third party within six months. During this interim period, Baya Bar offers two options for managing the franchise.

First, the Franchised Business can be supervised by an interim successor manager who is satisfactory to Baya Bar. This allows the business to continue operations under someone the Franchisor trusts. Alternatively, Baya Bar, at its sole discretion, may provide interim management itself.

If Baya Bar provides interim management, the franchisee's estate or representative will be responsible for paying Baya Bar's then-current interim management support fee. This fee is not specified in this excerpt but would be an additional cost to consider during the transfer period. The decision to provide interim management rests solely with Baya Bar, meaning it is not guaranteed. This interim management is pending the transfer of the Franchise to the deceased or disabled individual's lawful heirs or successors.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.