What standards must a transferee meet to qualify as a franchisee for Baya Bar?

According to Baya Bar's 2024 Franchise Disclosure Document, a transferee must meet several conditions to be approved as a franchisee. These conditions are detailed in Section 16.3 and 16.4 of the Franchise Agreement.

First, Baya Bar must decide not to exercise its right of first refusal to acquire the franchise. The transferee must then meet Baya Bar's current standards for qualifying franchisees, which suggests that the transferee will be evaluated based on criteria similar to those applied to new franchisees, such as financial stability, business experience, and personal qualifications. The transferee is also required to sign Baya Bar's then-current form of Franchise Agreement, which may contain terms that are significantly different from the original franchisee's agreement.

Additionally, the transferee must successfully complete Baya Bar's Initial Training Program to ensure they are proficient in the brand's operating standards and procedures. The original franchisee must have paid all outstanding amounts owed to Baya Bar and third-party creditors. Both the original franchisee and the transferee must sign a General Release, as outlined in Attachment 3 of the Franchise Agreement, releasing Baya Bar from any claims. The original franchisee must also subordinate any claims they have against the transferee to Baya Bar. The original franchisee is required to indemnify Baya Bar for a period of three years following the transfer. Finally, Baya Bar must approve the material terms and conditions of the transfer, and a transfer fee must be paid. The transfer fee is equal to 75% of the then-current initial franchise fee, or 50% of the then-current initial franchise fee for transfer to an existing franchisee in good standing. There are also exceptions for transfers among existing owners ($2,500), or to add a new entity or shareholder or member to your entity where such transfer does not change management control of your entity ($2,500), or $2,500 for a transfer to a spouse, parent or child upon death or permanent disability.