After signing the Development Agreement and the initial Baya Bar Franchise Agreement, what must a Developer do upon executing a lease for their first Baya Bar outlet, assuming all conditions in Section 5.4 are satisfied or waived?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Subsequent to Developer's signing of this Agreement and the initial Franchise Agreement, and provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for Developer's first Baya Bar outlet, Developer shall execute an additional Franchise Agreement for the development of the second Baya Bar outlet to be opened under the Mandatory Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, after signing the Development Agreement and the initial Franchise Agreement, and assuming all conditions in Section 5.4 are satisfied or waived, a Developer must execute an additional Franchise Agreement for the development of the second Baya Bar outlet upon executing a lease for their first Baya Bar outlet. This requirement is part of the Mandatory Development Schedule.
This means that the Developer is obligated to commit to developing the second Baya Bar location as soon as they secure the lease for their first location. This ensures that the development schedule is maintained and that the Developer is actively expanding their Baya Bar presence.
It is important for prospective Baya Bar developers to understand this commitment, as failure to adhere to the Mandatory Development Schedule can constitute a material event of default under the Development Agreement. Developers should carefully review Section 5.4 to understand the conditions that must be satisfied or waived before they can proceed with developing additional Baya Bar outlets.