Under what circumstances does Baya Bar offer a Multi-Unit Development Agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
In certain circumstances, we will offer the right to enter into a Multi-Unit Development Agreement in the form attached as Exhibit C to this Disclosure Document (the "MUDA") to develop multiple Franchised Businesses to be located within a specifically described geographic area (the "Development Area"). We will determine the Development Area before you sign the MUDA and it will be included in the MUDA. You must establish the agreed upon number of Franchised Businesses within the Development Area according to a minimum performance schedule (the "Minimum Performance Schedule"), and you must sign a separate Franchise Agreement for each Shop established under the MUDA.
The Franchise Agreement for the first Shop developed under the MUDA will be in the form attached as Exhibit B to this Disclosure Document and we expect that you will sign the first Franchise Agreement at the same time you sign the MUDA. For each additional Shop developed under the MUDA, you must sign our then-current form of Franchise Agreement, which may be different from the form of Franchise Agreement included in this Disclosure Document. The size of the Development Area will vary depending upon local market conditions and the number of Shops to be developed.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 6–9)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the company offers Multi-Unit Development Agreements (MUDA) in certain circumstances. These agreements grant the right to develop multiple Baya Bar Franchised Businesses within a specifically defined geographic area, known as the Development Area. The specific form of the MUDA is attached as Exhibit C to the FDD.
Before a franchisee signs the MUDA, Baya Bar determines the Development Area, which is then included in the agreement. The franchisee is obligated to establish an agreed-upon number of Baya Bar locations within this Development Area, adhering to a Minimum Performance Schedule. For each Baya Bar Shop established under the MUDA, the franchisee must also sign a separate Franchise Agreement.
The Franchise Agreement for the initial Baya Bar Shop developed under the MUDA is included as Exhibit B in the FDD, and Baya Bar anticipates that the franchisee will sign this agreement concurrently with the MUDA. However, for each subsequent Baya Bar Shop developed under the MUDA, the franchisee must sign Baya Bar's then-current form of Franchise Agreement, which may differ from the one initially provided in the FDD. The size of the Development Area is subject to variation, depending on local market conditions and the number of Baya Bar Shops to be developed.