Must the transferee execute Baya Bar's then-standard form of Multi-Unit Development Agreement?

According to Baya Bar's 2024 Franchise Disclosure Document, if a developer transfers their rights, the transferee must execute Baya Bar's then-standard form of Multi-Unit Development Agreement. This new agreement may contain terms and conditions that differ from the original agreement. The term of the new agreement must be no less than the unexpired term of future development obligations outlined in the original Mandatory Development Schedule.

This requirement ensures that Baya Bar maintains control over who is developing their franchises and that the new developer is bound by the current standards and obligations of the franchise system. It also protects Baya Bar by ensuring the transferee is committed to fulfilling the remaining development schedule.

For a prospective Baya Bar franchisee, this means that if they plan to sell their development rights, the person or entity buying those rights will need to enter into a new agreement with Baya Bar. This could involve different fees, obligations, and standards than the original agreement. It is important for both the seller and the buyer to understand these potential changes and how they might affect their investment and business plans.