Does Baya Bar have the right to inspect a Baya Bar Shop during construction?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
You must obtain our acceptance of the site for the Shop before you acquire the site. You must also obtain our acceptance of any contract of sale or lease for the Shop before you sign the contract or lease. We have the right to require you to use a real estate broker we designate to assist you in finding a location for your Shop. You must provide us with a copy of the fully signed lease for the Shop premises. We may require you and your landlord to sign a Collateral Assignment of Lease which permits us to assume your lease in certain circumstances including the termination or expiration of your Franchise Agreement (Attachment B to the Franchise Agreement).
Your Shop must be constructed according to plans that we have approved. We will provide you with sample plans and/or our specifications for a Baya Bar Shop, and we have the right to designate the architect/designer that you must use. We also have the right to approve the contractor you select. You must arrange for construction plans to be created that incorporate our requirements into the size and shape of the approved site for your Shop. You may not use the plans or begin building out your Shop until we have approved the construction plans, and any changes to the construction plans must also be approved by us before the change may be implemented. Our review is not meant to assess compliance with any applicable laws, regulations or building codes. Our review is only to verify that the construction plans accurately present our trade dress, the Marks and meet our specifications. We have the right to inspect your Shop while it is being constructed. You may not open your Shop for business without our approval. You must certify to us that your Shop has been constructed in compliance with the Americans with Disabilities Act.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar retains significant control over the construction and design of franchise locations. Before a franchisee can acquire a site for their Baya Bar shop, Baya Bar must first accept the site. Baya Bar must also accept any contract of sale or lease before the franchisee signs it.
Baya Bar provides sample plans and/or specifications for the shop and has the right to designate the architect/designer that the franchisee must use. Baya Bar also has the right to approve the contractor. Franchisees must arrange for construction plans that incorporate Baya Bar's requirements. The franchisee may not use the plans or begin building until Baya Bar has approved the construction plans. Any changes to the construction plans must also be approved by Baya Bar before implementation.
Importantly, Baya Bar explicitly states that it has the right to inspect a Baya Bar shop while it is being constructed. However, Baya Bar's review is only to verify that the construction plans accurately present their trade dress, the Marks and meet their specifications, and is not meant to assess compliance with any applicable laws, regulations, or building codes. The franchisee may not open their shop for business without Baya Bar's approval and must certify that the shop has been constructed in compliance with the Americans with Disabilities Act.