What triggers the execution of an additional Franchise Agreement for each subsequent Baya Bar outlet to be developed by the developer for Baya Bar?

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. However, this is conditional, as all conditions outlined in Section 5.4 must be either satisfied or waived.

This means that for each new Baya Bar location a developer plans to open, a new Franchise Agreement must be signed once the lease for that location is secured. This process ensures that Baya Bar maintains control over the expansion and that each new location adheres to the current standards and practices of the franchise. The developer must also meet certain conditions or obtain waivers to proceed with each new location.

It's important to note that the Franchise Agreement presented for each subsequent Baya Bar outlet may differ from the initial agreement. The initial franchise fee for each additional outlet will be the amount set forth in Section 4.1. The developer will not receive any initial training related to each additional Baya Bar outlet, as the training received pursuant to the initial Franchise Agreement is considered sufficient for operating all subsequent locations.

Prospective Baya Bar developers should pay close attention to Section 5.4, which outlines the conditions that must be met or waived before the franchisor grants the right to develop an additional outlet. These conditions include providing requested information and financial statements, and meeting the franchisor's financial criteria for multi-unit franchisees. Failure to meet these conditions could prevent the developer from expanding as planned.