Can the rights and remedies in the Baya Bar Franchise Agreement be exercised more than once?

Based on the 2024 Franchise Disclosure Document, the Baya Bar franchise system utilizes a multi-unit development agreement where developers are granted rights to establish multiple Baya Bar outlets within a specific development area, subject to fulfilling certain conditions. The developer's rights to open and operate a Baya Bar outlet and use the System and Marks are derived only through the execution of a Franchise Agreement for each Baya Bar outlet to be established in the Development Area. This agreement sets forth conditions which, if fully satisfied, confer upon Developer the rights to enter a Franchise Agreement with Franchisor to establish one or more Baya Bar outlets in the Development Area only. Therefore, the rights and remedies are applied individually to each franchise agreement.

According to the FDD, a developer must enter into a separate Franchise Agreement with Baya Bar for each outlet they plan to develop. Each subsequent Baya Bar outlet to be established requires the developer to execute and deliver to Baya Bar the then-current form of Franchise Agreement, which may differ from the initial agreement. This process ensures that each outlet operates under a specific agreement, and the developer must comply with the conditions precedent to the grant of such rights outlined in the Franchise Agreement.

This approach allows Baya Bar to maintain control over the expansion and operation of its franchise system, ensuring that each location meets the brand's standards. For a prospective franchisee, this means that the rights and remedies are tied to each individual franchise agreement, and the developer must adhere to the terms and conditions of each agreement to maintain their development rights. The developer's failure to comply with the Mandatory Development Schedule constitutes a material event of default under the agreement.