factual

Under what conditions must a Baya Bar franchisee pay a per diem fee for training?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

For the opening of the Shop, we will provide you with one of our representatives. The trained representative will provide onsite pre-opening and opening training, supervision and assistance to you for seven to ten days prior to your Shop opening. If you request that our representative provide additional days of onsite assistance, you must reimburse the expenses our representative incurs while providing the additional assistance, including travel, lodging and meals and our per diem fee. If you are opening your second (or later) Shop, we have the right to reduce the duration of our representative's visit or to not provide opening assistance.

If, during the term of your Franchise Agreement, you request that we provide additional training or assistance onsite at your Shop or if we determine that additional training or assistance is necessary, you must pay our then-current per diem fee for each trainer we provide, and you must reimburse us for any expenses our trainers incur, such as costs of travel, lodging, and meals.

We may choose to hold refresher training courses, and we may designate that attendance at refresher training is mandatory for you, your General Manager and/or other Shop personnel. We do not anticipate charging a fee for refresher training, but you will pay for all of the expenses incurred by your trainees, including travel, lodging, meals and wages.

We may also choose to hold an annual meeting of our franchisees to provide additional training, introduce new products or changes to the System, or for other reasons. We may designate that attendance at an annual meeting is mandatory for you, your General Manager and/or other Shop personnel. We do not anticipate charging a fee to attend the meeting, but you will pay for all of the expenses incurred by your attendees at the meeting, including travel, lodging, meals and wages. We will designate the location of any franchisee meeting, such as a resort hotel, but we will not designate an unreasonably expensive site.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–36)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee may be required to pay a per diem fee for training under specific circumstances. Initially, Baya Bar provides a representative for the opening of the shop to provide on-site training and assistance for seven to ten days. If the franchisee requests additional days of on-site assistance from the representative, they must reimburse Baya Bar for the representative's expenses, including travel, lodging, and meals, as well as a per diem fee.

During the term of the Franchise Agreement, if the franchisee requests additional training or assistance on-site at their shop, or if Baya Bar determines that additional training or assistance is necessary, the franchisee must pay Baya Bar's then-current per diem fee for each trainer provided. Additionally, the franchisee is responsible for reimbursing Baya Bar for any expenses incurred by the trainers, such as travel, lodging, and meals.

Baya Bar may also offer refresher training courses or hold an annual meeting of franchisees. While Baya Bar does not anticipate charging a fee for these events, the franchisee is responsible for covering all expenses incurred by their trainees or attendees, including travel, lodging, meals, and wages. This means that while the training itself might be free, franchisees need to budget for the logistical costs of sending personnel to these events.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.