What are some of the required actions a Baya Bar franchisee must complete prior to the Opening Date?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Prior to the Opening Date, Franchisee shall (i) complete all exterior and interior preparations for the Franchised Business, including installation and cleaning of equipment, fixtures, furnishings, décor and signs, in accordance with System requirements and the plans and specifications consented to by Franchisor, (ii) satisfactorily complete Franchisor's Initial Management Training Program, as further set forth in Article 7, (iii) hire and train staff, if required, (iv) obtain all required licenses to operate the Franchised Business and (v) obtain all required insurance and provide Franchisor with certificates therefor.
If Franchisee fails to comply with any of such obligations, Franchisor shall have the right to prohibit Franchisee from opening for business.
Franchisee's failure to open the Franchised Business and commence business (i) in accordance with the foregoing and (ii) within three hundred sixty-five (365) days following the date of this Agreement, as may be extended by Franchisor in Franchisor's sole discretion, shall be deemed a material event of default under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee must complete several actions before opening their franchise. These include completing all exterior and interior preparations, such as installing and cleaning equipment, fixtures, furnishings, décor, and signs, according to Baya Bar's system requirements and approved plans. The franchisee must also satisfactorily complete Baya Bar's Initial Management Training Program.
Additionally, the franchisee is responsible for hiring and training staff, if required for their location. They must also obtain all the necessary licenses to legally operate the Baya Bar franchise and secure all required insurance coverage, providing certificates of insurance to Baya Bar as proof of coverage.
Failure to meet these obligations gives Baya Bar the right to prevent the franchisee from opening the business. Furthermore, failing to open the business within 365 days of signing the Franchise Agreement, unless extended by Baya Bar, constitutes a material breach of the agreement.