What is the required opening date for a Dickeys Barbecue Pit franchise, as defined in the franchise agreement?
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.11 COMMENCE BUSINESS. You acknowledge that time is of the essence with respect to opening and commencing business operations of your Restaurant. Subject to your compliance with the conditions stated below, you are obligated to open your Restaurant and commence business on or before the expiration of twelve (12) months after the Effective Date of this Agreement, unless you obtain an extension of such time period from Dickey's in writing or unless otherwise provided in a Development Agreement between you and Dickey's. Prior to opening, you shall complete all exterior and interior preparations for your Restaurant, including installation of equipment, fixtures, furniture, chairs, tables, lights, kitchen equipment, the barbecue pit, and signage pursuant to the plans and specifications and from vendors approved by Dickey's. You shall comply with all other pre-opening obligations to Dickey's satisfaction, including but not limited to, those obligations described in Articles 4.1, 6.1, 7, 8, 9 and 12. If you fail to comply with any of these obligations, Dickey's shall have the right to prohibit you from commencing business. Your failure to open your Restaurant and commence business in accordance with the foregoing shall be deemed an event of default under Article 16.
Source: Item 22 — CONTRACTS (FDD pages 95–96)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, a franchisee is obligated to open their restaurant and commence business within twelve months of the effective date of the Franchise Agreement. This is contingent upon the franchisee's compliance with specific conditions outlined in the agreement.
However, Dickeys Barbecue Pit may grant a franchisee a written extension to this initial 12-month period. Also, if there is a Development Agreement in place between the franchisee and Dickeys Barbecue Pit, the opening date may be governed by the terms of that separate agreement.
Prior to opening, the franchisee must complete all exterior and interior preparations, including the installation of equipment, fixtures, furniture, and signage, according to Dickeys Barbecue Pit's approved plans and vendors. The franchisee must also fulfill all other pre-opening obligations to Dickeys Barbecue Pit's satisfaction, as detailed in the franchise agreement. Failure to meet these obligations can result in Dickeys Barbecue Pit prohibiting the franchisee from opening the restaurant, and not opening on time constitutes a default under the agreement.