Who pays for the initial onsite support and training provided by Baya Bar?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
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- One of our representatives to provide onsite support, opening assistance and training for six days in connection with the opening of your Shop. We will provide this opening assistance and training at our expense, but if you request additional days of onsite assistance you must reimburse our costs for the additional days, including our per diem fee for our representative and the additional out-of-pocket expenses our representative incurs. (Franchise Agreement, Section 6.4) If you are opening your second or later Shop, we have the right to reduce the duration of our representative's visit or to not provide opening assistance.
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, the franchisor covers the expenses for the initial onsite support, opening assistance, and training provided by one of their representatives for six days in connection with the opening of a Baya Bar shop. However, if the franchisee requests additional days of onsite assistance, they are responsible for reimbursing Baya Bar's costs. This reimbursement includes a per diem fee for the representative and any out-of-pocket expenses incurred.
This arrangement is fairly common in the franchise industry, where franchisors typically provide initial training and support as part of the franchise fee. This support ensures that the franchisee starts operations with the necessary knowledge and skills to maintain brand standards and operational efficiency.
However, the franchisee needs to be aware of the potential for additional costs if they require more than the initially provided six days of support. These extra costs can include per diem fees, travel, lodging, and meals for the Baya Bar representative. For franchisees opening subsequent locations, Baya Bar retains the right to reduce the duration of the representative's visit or not provide opening assistance at all, which could place more responsibility and cost on the franchisee for training and support.