factual

What site selection criteria does Baya Bar deem advisable for franchisees?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 10.1 Site Selection Guidelines. Site selection criteria, as Franchisor may deem advisable. Franchisor shall also approve the site in accordance with Section 8.1.2.

  • 8.1.1 Franchisee assumes all cost, liability, expense and responsibility for obtaining and developing a site for the Franchised Business within the Territory and for constructing and equipping the Franchised Business at such site. Franchisee shall not make any binding commitment to a prospective vendor or lessor of real estate with respect to a site for the Franchised Business unless the site location is approved by Franchisor. While Franchisor may render assistance to Franchisee in the selection of a site, as set forth in Section 8.1.2 below, Franchisee has sole responsibility for procuring and developing a site for the Franchised Business and Franchisee may and is encouraged to consult with professionals of Franchisee's choosing in discharging such responsibility. Franchisee acknowledges that Franchisor's approval of a prospective site location is permission only, does not constitute a representation, promise, warranty or guarantee, express or implied, by Franchisor that the Franchised Business operated at that site will be profitable or otherwise successful, and cannot, and does not, create a liability for Franchisor. Franchisee releases Franchisor from any claims over the site location selection and evaluation by Franchisor, and Franchisee shall hold Franchisor harmless with respect to Franchisee's selection of the site for the Franchisee's Franchised Business.

  • 8.1.2 Franchisee shall locate a site that satisfies the site selection guidelines provided to Franchisee by Franchisor and shall submit to Franchisor, in writing, a description of the site, together with written certification the site complies with Franchisor's site selection guidelines, and such other information and materials as Franchisor may reasonably require. Recognizing that time is of the essence, Franchisee shall submit such information and materials for a proposed site to Franchisor for its consent no later than sixty (60) days after the execution of this Agreement. Franchisor shall have ten (10) business days after receipt of this information

Source: Item 22 — CONTRACTS (FDD page 56)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, franchisees are responsible for finding and developing a site for their Baya Bar business within their designated territory. While Baya Bar may offer assistance, the franchisee ultimately holds sole responsibility for site procurement and development, and Baya Bar encourages franchisees to seek advice from professionals during this process. Franchisees must ensure the site adheres to Baya Bar's provided site selection guidelines.

To ensure compliance with Baya Bar's standards, franchisees must submit a written description of the proposed site to Baya Bar, along with a certification confirming that the site meets the franchisor's guidelines, and any other reasonably required information. This submission must occur no later than 60 days after the franchise agreement is signed. Baya Bar then has 10 business days to review the submitted information and provide their consent.

It's important to note that Baya Bar's approval of a site does not constitute a guarantee of the business's profitability or success at that location. The FDD stipulates that Baya Bar is released from any claims related to site selection and evaluation, and the franchisee agrees to hold Baya Bar harmless in this regard. This highlights the importance of thorough due diligence on the franchisee's part when selecting a location.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.