Is Baya Bar's site selection subject to franchisor acceptance?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Site Selection: You must assume all costs, liabilities, expenses and responsibility for locating, obtaining and developing a site for the Shop and for constructing and equipping the Shop at the accepted site. You will select the site for the Shop subject to our acceptance and using our site selection criteria. Before you lease or purchase the site for the Shop, you must locate a site that satisfies our site selection guidelines. If we deem it necessary we will conduct one onsite evaluation, but before we conduct the evaluation you must submit to us in the form we specify a description of the site, including evidence that the site satisfies our site selection guidelines, together with other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site. We have the right to approve deviations from our site selection standards based on the individual factors and components of a particular site.
You must have located and submitted to us, for our review, all information we require regarding the site you propose for your Shop no later than 90 days after you have signed the Franchise Agreement. We will have 30 days after we receive all required information and materials from you to accept or decline the proposed site as the location for your Baya Bar Shop. If we do not provide our specific acceptance of a proposed site, the site is deemed not accepted. We do not warrant or guarantee that your Shop will be successful at any site that we accept. Our acceptance only means that the site meets our minimum requirements for a Shop, subject to any deviation from our standards as we may permit.
We will provide you with our current written site selection guidelines and any other site selection counseling and assistance we think is advisable. Our criteria for site selection include: general location and neighborhood, proximity to competition, neighborhood demographics, traffic patterns, availability of parking, size of location, physical characteristics of existing buildings in the area, co-tenants in the shopping center or immediate area, condition of the premises and how much build-out or construction it will need, availability of utilities and the terms of the lease. We will use these and other factors in determining the
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–36)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the site selection for a Baya Bar shop is subject to the franchisor's acceptance. The franchisee is responsible for locating, obtaining, and developing a site that meets Baya Bar's site selection criteria. Before leasing or purchasing a site, the franchisee must submit a description of the site, evidence that it meets the site selection guidelines, and other required information to Baya Bar for evaluation. Baya Bar may conduct an on-site evaluation if deemed necessary.
Baya Bar has the right to approve deviations from their site selection standards based on individual site factors. The franchisee must submit all required site information to Baya Bar for review no later than 90 days after signing the Franchise Agreement. Baya Bar then has 30 days to either accept or decline the proposed site. If Baya Bar does not provide specific acceptance, the site is considered not accepted. Baya Bar does not guarantee the success of the shop at any accepted site; their acceptance only indicates that the site meets their minimum requirements, with any permitted deviations.
Baya Bar will provide the franchisee with their current written site selection guidelines and any other advisable site selection counseling and assistance. The site selection criteria include factors such as general location, proximity to competition, neighborhood demographics, traffic patterns, parking availability, size of the location, physical characteristics of existing buildings, co-tenants, condition of the premises, required build-out or construction, availability of utilities, and lease terms. These factors, among others, will be used to determine the suitability of the proposed site. The franchisee must also provide Baya Bar with a copy of the proposed lease for the shop. If an acceptable site cannot be located within 180 days after signing the Franchise Agreement, Baya Bar may terminate the agreement, and the initial franchise fee will not be refunded, unless an extension is agreed upon.
This process is typical in franchising, as it allows Baya Bar to maintain brand consistency and ensure that new locations have the best chance of success based on their established criteria. However, franchisees should be aware of the time constraints and the risk of losing their initial franchise fee if a suitable location cannot be found within the specified timeframe. Franchisees should also carefully review Baya Bar's site selection guidelines and seek clarification on any aspects that are unclear to ensure they are selecting a site that is likely to be approved.