Baya Bar
Baya Bar offers specialty acai retail and café franchises, known for their unique products and recipes in the quick-service restaurant industry.
Baya Bar franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment necessary to begin operation of a single Baya Bar franchise ranges from $160,990 to $340,476. This includes $35,000 that must be paid to the franchisor or its affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $35,000 for establishing a single Baya Bar Shop. This fee reduces to $30,000 for the second shop and further to $25,000 for any third or subsequent shops [p.10].
What are the ongoing royalty and advertising fees?
The franchisee pays a continuing royalty of 5% of weekly gross revenues [p.165]. Additionally, the franchisee must contribute at least 1% of their monthly gross revenue to local advertising [p.85] and pay a Brand Fund Contribution equal to 1% of weekly gross revenue, which can be increased up to 3% by the franchisor's discretion [p.85].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the duration of the initial franchise agreement or the renewal process beyond mentioning the option to enter into a new franchise agreement upon expiration under certain conditions [p.63].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires payment of a transfer fee. For transfers to an existing franchisee in good standing, the fee is 50% of the initial franchise fee [p.95]. Transfers among existing shareholders or members without changing management control incur a $2,500 fee [p.95]. Transferring to a spouse, parent, or child due to death or permanent disability also incurs a $2,500 fee [p.95]. For Baya Bar System transfers, the fee is 50% of the initial franchise fee for existing developers in good standing, 25% if among named individuals, and $2,000 for transfers to a spouse, parent, or child due to death or permanent disability [p.141].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you fail to complete the pre-opening training program to their satisfaction after an opportunity to retake it at your expense, or if they conclude within ten days of completing the training that you do not have the ability to operate the franchise satisfactorily [p.10]. This isn't specified in the excerpts for other grounds of termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for qualification as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, and other channels of distribution or competitive brands that the company controls [p.36]. Additionally, if your shop is located in a non-traditional site, you will not receive a designated territory [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides initial pre-opening training for up to three trainees, including the prospective franchisee and the General Manager, which lasts approximately two weeks. This training can take place at various locations, such as corporate headquarters or designated affiliates' locations. Additionally, upon reasonable request or as deemed appropriate by the franchisor, the company will provide on-site remedial training and assistance during the term of the agreement, subject to availability of personnel, for a fee that includes travel, lodging, and meals costs. [p.69]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but generally does not make representations about future financial performance. The franchisor also does not authorize its employees or representatives to make such representations either orally or in writing [p.53]. However, the franchisor is permitted to include information about the actual or potential financial performance of its outlets under certain conditions as specified by the FTC's Franchise Rule [p.52].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the menu items, products, and services expressly approved in writing by the franchisor [p.43]. You may need to purchase or lease certain items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3].