Under what circumstances might Baya Bar step in and manage a franchisee's shop?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Management Fee | 10% of Gross Sales, plus expenses | If incurred | We may step in and manage your Shop in certain circumstances, such as death, disability or prolonged absence. We will charge a management fee if we manage your Shop, and you must reimburse our expenses. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar may step in to manage a franchisee's shop under specific circumstances. These circumstances include events such as the death, disability, or prolonged absence of the franchisee.
If Baya Bar does take over the management of the shop, the franchisee will be responsible for covering a management fee. This fee is calculated as 10% of the shop's Gross Sales, in addition to reimbursing Baya Bar for any expenses incurred during the management period.
This arrangement ensures that the Baya Bar business can continue operating smoothly even if the franchisee is temporarily or permanently unable to manage the location. However, it also means the franchisee will incur additional costs, reducing their profit margin during the period Baya Bar manages the shop.