Is there an exception to the ceased operations rule for Baya Bar franchisees?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
| h. | "Cause" defined - non-curable | Sections 17.1 and | |
|---|---|---|---|
| defaults | 17.2 | ||
| days. | |||
| We may terminate the Franchise | |||
| Agreement upon notice to you if you: do | |||
| not acquire a site, do not complete | |||
| construction, obtain permits and/or open | |||
| the Franchised Business within required | |||
| time frames; falsify any report to us; cease | |||
| operations for 5 days or more, unless the | |||
| premises are damaged and you apply to | |||
| relocate; lose possession of the premises, | |||
| unless you are not at fault for loss and you | |||
| timely apply to relocate; fail to restore and | |||
| re-open the Franchised Business within | |||
| 120 days after a casualty, as may be | |||
| extended by us; fail to comply with |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 43–52)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar can terminate the Franchise Agreement if a franchisee ceases operations for 5 days or more. However, there is an exception if the premises are damaged and the franchisee applies to relocate.
Additionally, Baya Bar may terminate the Franchise Agreement if the franchisee loses possession of the premises, unless the franchisee is not at fault for the loss and they timely apply to relocate.
Another exception exists if the franchisee fails to restore and re-open the Franchised Business within 120 days after a casualty, but this may be extended by Baya Bar. These exceptions provide some flexibility for franchisees facing unforeseen circumstances that disrupt their business operations.