For each subsequent Baya Bar outlet to be developed, what triggers the requirement for the Developer to execute an additional Franchise Agreement?
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. Provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for each subsequent Baya Bar outlet to be developed by Developer, Developer shall execute an additional Franchise Agreement for the development of the next 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 initial Franchise Agreement, the execution of a lease for each subsequent Baya Bar outlet triggers the requirement for the Developer to execute an additional Franchise Agreement. This agreement is specifically for the development of the next Baya Bar outlet to be opened under the Mandatory Development Schedule.
This condition is contingent upon satisfying or waiving all conditions outlined in Section 5.4 of the agreement. These conditions likely involve fulfilling certain obligations and meeting specific criteria set by Baya Bar before the developer can proceed with opening additional locations.
This clause ensures that Baya Bar maintains control over the expansion process, allowing them to assess the developer's compliance and financial stability before committing to further development. It also allows Baya Bar to present the Developer with the then-current Franchise Disclosure Document and Franchise Agreement, which may differ from the initial agreement, ensuring that the developer is always operating under the most up-to-date terms and conditions.