What is the penalty for offering a prohibited product or service at a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
--------------------------------| | Fees (1) | Amount | Due Date | Remarks | | Pre-Opening Training (For New or Replacement Employees) | Our then-current per session training fee, plus expenses Current per session training fee = $3,000 | Before Training | We will train up to three people at no additional charge. If you request that we provide our pre-opening training program to any additional employees, or to new or replacement employees during the term of your Franchise Agreement, you must pay our training fee as well as the trainees' expenses, including travel, lodging, meals and wages.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, if a franchisee offers any product or service that Baya Bar has not approved, the franchisee will incur a fee of $500 per day for each day the infraction continues. This "Prohibited Product or Service Fee" is payable as incurred.
This means that a Baya Bar franchisee must ensure that all products and services offered at their location have been explicitly approved by the franchisor. Failure to obtain approval and offering unapproved items can result in a significant financial penalty that accrues daily. For example, if a franchisee offers an unapproved product for a week, they would owe $3,500 in fees.
Franchisees should maintain open communication with Baya Bar regarding any new products or services they wish to introduce. They should also seek written approval before offering anything outside the standard menu or service offerings to avoid incurring these daily penalties. This policy is in place to ensure brand consistency and quality control across all Baya Bar locations.