Does Baya Bar require a Franchisee Acknowledgement Statement to be signed?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
ecember 31, 2021.
Our fiscal year end is December 31st .
Exhibit D
FINANCIAL STATEMENTS
ITEM 22 CONTRACTS
A copy of all proposed agreements regarding the franchise offering are included in this Disclosure Document, as follows:
- Exhibit B The Franchise Agreement and all attachments to it (Marks, Territory, General Release, ACH Authorization, Collateral Assignment of Lease, Statement of Ownership Interests in Franchisee, Telephone, Internet, and Social Media Listing Assignment Agreements, Spousal Guaranty, and Confidentiality and Non-Compete Agreement).
- Exhibit C -- Multi-Unit Development Agreement
- Exhibit H -- Franchisee Acknowledgement Statement, as permitted by state law. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, f
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a Franchisee Acknowledgement Statement is included as Exhibit H. The FDD states that this statement is used as permitted by state law. The document clarifies that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Baya Bar or its representatives. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.
This means that Baya Bar franchisees may be required to sign an acknowledgement statement, depending on state regulations. However, the FDD explicitly protects franchisees by ensuring that these statements do not compromise their legal rights or ability to hold Baya Bar accountable for its representations.
Prospective franchisees should carefully review Exhibit H and any state-specific addenda to understand the specific requirements and implications of the Franchisee Acknowledgement Statement in their state. It is advisable to consult with a legal professional to fully understand their rights and obligations before signing any documents related to the franchise agreement.