factual

What items in the Beyond Juicery Eatery FDD discuss site selection and acquisition/lease obligations?

Beyond_Juicery_Eatery Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

Selection of Restaurant Location. You must purchase or lease a suitable site for the Restaurant subject to our approval with the assistance of our Designated Supplier. You must submit to us a description of the proposed site together with evidence satisfactory to us that confirms your favorable prospects for obtaining the proposed site. You must supply the required Development Materials that outline all of the information needed by us to review a proposed site. You must use the real estate site analysis services of our approved supplier to evaluate your proposed site. We will give you written notice of approval or disapproval of the proposed site within forty-five (45) days after receiving your written proposal. The factors we consider in approving the location for the proposed site may include, but are not limited to, the following: (i) general location; (ii) traffic patterns; (iii) rent expense; (iv) demographics; (v) equipment and services located at the site; (vi) leasehold improvement costs; (vii) ability to reflect image to be portrayed by "Beyond Juicery + Eatery" Restaurants; (viii) parking; and (ix) other data and information we receive from proprietary software that we use. You must select a location we approve within one hundred twenty (120) days after the execution of the Franchise Agreement. We may cancel the Franchise Agreement, in our sole discretion, and option if you fail to select a location acceptable to us within this time frame. In this event, your Initial Franchise Fee is non-refundable.

[Item 23: RECEIPTS]

3. DEVELOPMENT SCHEDULE; LOCATION SELECTION; OCCUPANCY CONTRACT; DEVELOPMENT MATERIALS

  • A. Developer shall develop, open, commence operation of, and continuously operate pursuant to the respective Franchise Agreements the minimum number of Franchised Restaurants in the Territory, pursuant to the Development Schedule as described in Attachment 1 to the Area Development Agreement.
  • B. Each Franchised Restaurant and the cumulative number of Franchised Restaurants indicated in the Development Schedule shall be OPEN AND OPERATING by the date(s) specified therein. Developer shall select a Location that we approve consistent with the applicable Franchise Agreement so that each and every Franchised Restaurant is OPEN AND OPERATING pursuant to the Development Schedule. Our consent to any Location or execution of a Franchise Agreement shall not waive, extend, or modify the Development Schedule. Unless otherwise agreed and approved by us, the Franchised Restaurants shall refer to Beyond Juicery + Eatery Restaurants operating pursuant to the System.

If the Developer shall close any Location, whether voluntarily or involuntarily, and whether as a result of the loss of possession of the premises, by fire or other casualty, or otherwise, the Developer shall locate and secure a suitable alternative Location or premises approved by us within three (3) months from the loss of possession of the original site, and shall be open for business at the new Location not more than nine (9) months following the closing of the prior Location, while at the same time maintaining the Development Schedule. If a suitable alternative Location is not secured and opened as hereinabove described or if Developer does not comply with the Development Schedule, this Agreement and the right of the Developer to develop additional Locations under this Agreement shall terminate. The opening of a Location in replacement of another Location under this paragraph shall not satisfy the Developer's obligation to open Locations under this Section 3 of this Agreement.

[Item 12: TERRITORY]

You must receive our approval before relocating your Restaurant within your Designated Area. In determining whether to allow you to relocate your unit, we consider the same factors we would consider in initially approving a site for your Restaurant. In addition, we consider such factors as whether you have:

    1. Removed all obligations from the previous location (e.g., land or building lease, land contract, property, or sales taxes);
    1. Previously violated your Franchise Agreement, any health codes, or other state or local ordinances, or regulations;
    1. Made full payment of all monies owed to us; and
    1. Received prior approval, from us, for the proposed location.

[Item 22: CONTRACTS]

WHEREAS, Franchisee seeks Beyond Juicery + Eatery's approval for particular real estate.

NOW THEREFORE, it is hereby agreed as follows:

    1. Option. Franchisee hereby grants to Beyond Juicery + Eatery the option to purchase the real estate described in Exhibit "A" (and hereinafter referred to as the "Real Estate") upon the expiration without renewal or termination of the Franchise Agreement. Any transfer, renewal, extension, or amendment of the Franchise Agreement shall not affect this Option Agreement unless expressly provided. The terms of the Option rights are as follows:
  • A. Exercise of Option. Within fifteen (15) days following the termination or expiration without renewal of the Franchise Agreement as provided for in the Franchise Agreement, Beyond Juicery + Eatery may notify Franchisee in writing of its intention to exercise this option to purchase the Real Estate, and which notice shall constitute an agreement to purchase the Real Estate conditioned upon Beyond Juicery + Eatery obtaining any necessary financing and the real estate being inspected, the results are satisfactory to Beyond Juicery + Eatery. The closing of the sale shall occur as soon as all documentation and other matters have been completed, including obtaining of any necessary financing and inspections, but in any event not later than one hundred twenty (120) days after the date upon which the fair market value of the Real Estate is established, as provided in Paragraph B below, unless the parties hereto agree to a later closing date.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 32–33)

What This Means (2025 FDD)

According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, several items address site selection and lease obligations. Item 11 outlines the franchisor's assistance in selecting a restaurant location, stating that franchisees must purchase or lease a site subject to Beyond Juicery Eatery's approval and with the assistance of a designated supplier. It details the submission of site descriptions and the use of real estate site analysis services. Item 23 also discusses location selection, relocation, and occupancy contracts, including the developer's responsibilities for opening and operating restaurants according to a development schedule. Additionally, it mentions the process for securing alternative locations if the original site is lost. Item 12 specifies that franchisees must receive approval before relocating their restaurant and highlights factors considered for relocation approval. Item 22 includes an option agreement where Beyond Juicery Eatery has the option to purchase the real estate upon the expiration or termination of the franchise agreement.

These sections of the FDD collectively emphasize the importance of franchisor approval in site selection and outline the franchisee's obligations in securing and maintaining an appropriate location. Beyond Juicery Eatery retains significant control over site selection, influencing factors such as location, traffic patterns, rent expense, and demographics. Franchisees must adhere to specific timelines for selecting a location, and failure to do so can result in the termination of the franchise agreement and the loss of the initial franchise fee.

The FDD also clarifies that Beyond Juicery Eatery's approval of a location does not guarantee profitability or success, placing the financial responsibility on the franchisee. The franchisor has the right to review and consent to the lease agreement, potentially charging a fee for this review. Furthermore, the option agreement in Item 22 gives Beyond Juicery Eatery the right to purchase the real estate under certain conditions, which could impact the franchisee's long-term investment and control over the location.

Prospective franchisees should carefully review these items to understand the extent of Beyond Juicery Eatery's control over site selection and lease terms, as well as their own responsibilities and potential risks associated with securing and maintaining a location. Understanding these obligations is crucial for making an informed decision about investing in a Beyond Juicery Eatery franchise.

Disclaimer: This information is extracted from the 2025 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.