Under the Baya Bar Development Agreement, what is the maximum number of Baya Bar outlets a developer can establish in the Development Area?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
REFORE, the parties, in consideration of the promises, undertakings and commitments of each party to the other set forth herein, and intending to be legally bound hereby, mutually agree as follows:
1. RECITATIONS. The Recitations set out above form part of this Agreement.
2. GRANT OF DEVELOPMENT RIGHTS.
- 2.1 Grant. Franchisor hereby grants to Developer, and the Developer hereby accepts from the Franchisor, on the terms and conditions set forth in this Agreement, which includes, but is not limited to, the execution of a Franchise Agreement pursuant to Section 4.1 hereof, the right to develop, construct, open and operate one (1) Baya Bar outlet within the Development Area set forth in Attachment 2. Developer shall be granted rights to establish additional Baya Bar café outlets in the Development Area, up to the total number of outlets set forth in the Mandatory Development Schedule set forth in Section 5.2 hereof, subject to Developer's full compliance with all conditions precedent to the grant of such rights outlined below, which rights shall be exercised in accordance with Section 4.1 hereof.
- 2.2 Reservation of Rights. Notwithstanding the provisions of Section 2.1 above, Developer understands and agrees Franchisor fully reserves all other rights, other than as specified in this Agreement, for sales, solicitation and distribution of Baya Bar products and services within or outside of the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the Development Agreement grants the developer the right to establish one Baya Bar outlet within the Development Area initially. The developer may be granted rights to establish additional Baya Bar café outlets in the Development Area, up to the total number of outlets set forth in the Mandatory Development Schedule. This is subject to the developer's full compliance with all conditions precedent to the grant of such rights.
The Development Agreement outlines the terms and conditions for granting development rights, including the execution of a Franchise Agreement. The developer's ability to open and operate Baya Bar outlets and use the System and Marks is contingent upon executing a Franchise Agreement for each outlet in the Development Area.
It is important to note that the Development Agreement itself does not grant the developer any right or license to operate a Baya Bar outlet, distribute any product or service, or use the Marks. These rights are only conferred upon the execution of individual Franchise Agreements for each Baya Bar outlet to be established. The specific number of outlets a developer can establish depends on the Mandatory Development Schedule and their compliance with the agreement's conditions.