Can the successor agreement fee for a Baya Bar franchise be higher in the new agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.1.3 The Successor Franchise Agreement shall supersede this Agreement in all respects, and Franchisee understands and acknowledges that the terms of such new agreement may differ from the terms of this Agreement, including, without limitation, higher or lower royalty and other fees.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the terms of the Successor Franchise Agreement may differ from the original agreement. Specifically, the document states that royalty and other fees, which would include the successor agreement fee, could be higher or lower in the new agreement.
This means that when a Baya Bar franchisee chooses to renew their franchise agreement, they should not assume that the renewal terms will be identical to their original agreement. The cost to renew could be more or less than the $3,500 successor agreement fee outlined in the original franchise agreement.
As a prospective franchisee, it is important to carefully review the terms of the successor agreement offered by Baya Bar at the time of renewal to fully understand the potential costs and obligations associated with continuing the franchise relationship.