Risk Score
Pending analysis
Investment Range
$160,990 - $340,476
Franchise Fee
$25,000
Total US Locations
26
Business Summary
Baya Bar operates as a specialty acai retail and cafe business. A Baya Bar franchise uses the franchisor's proprietary products, recipes, formulas, techniques, trade dress, trademarks, and logos to offer a range of acai-based items and other cafe products.
Corporate History
Baya Bar Franchise Systems, LLC was established as a Delaware limited liability company on March 14, 2018. The company began offering franchises in October 2018, after its initial approval in New York State. Before franchising, several affiliated entities, including Baya Bowls LLC (formed 2016), Baya Bowls S.I. LLC (formed 2017), Baya Bar III LLC (formed 2017), Baya Bar IV LLC (formed 2017), Baya Bar V LLC (formed 2017, but closed 2018), Baya Bar Richmond LLC (formed 2018), and Baya Bar Avenue J LLC (formed 2020), owned and operated similar acai businesses in the metropolitan New York area, with the first operating since December 2016.
Financial Overview
Investment Range
$160,990 - $340,476
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$72,950
Equipment Costs (High)
$177,560
Working Capital
$32,796
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Baya Bar Franchise Systems, LLC has financial statements that present fairly in all material respects, according to its independent auditor. However, a special risk highlighted in the FDD indicates that the franchisor's financial condition, as reflected in its financial statements, calls into question Baya Bar Franchise Systems, LLC's ability to provide services and support to its franchisees. The balance sheet shows a Members' (Deficit) of $(106,774) in 2023 and $(110,762) in 2022, and cash and equivalents were low at $685 in 2023. Advances to related parties, which are classified as a component of members' equity due to lacking stated repayment terms, are significant at $(300,869) in 2023.
Financing Details
Baya Bar Franchise Systems, LLC does not offer any direct or indirect financing to its franchisees. This means that Baya Bar does not provide loans or payment plans for the initial franchise fee, equipment, inventory, or any other startup costs. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
26
Franchised Units
23
Corporate Units
3
Avg Square Footage
975
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Baya Bar Franchise Systems, LLC has no litigation history that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Baya Bar has not been involved in any material litigation, including administrative, criminal, or civil actions, within the specified disclosure period.
Bankruptcy History
Baya Bar Franchise Systems, LLC has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document. This indicates that neither the franchisor, its affiliates, predecessors, officers, nor general partners have filed for bankruptcy or been subject to bankruptcy proceedings within the last 10 years.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew a Baya Bar franchise, franchisees must be in full compliance with their agreement and have no more than three defaults during the current term. They must provide at least six months' written notice before the term ends, pay a successor agreement fee of $3,500, and sign a new franchise agreement, which may have different terms. Franchisees are also required to maintain their location, current trade dress, and other brand standards, sign a general legal release, and comply with the current qualifications and training requirements, including any additional training.
Training & Support Program
Franchisor Assistance
Before a Baya Bar franchise opens, the franchisor provides site selection guidelines, and may conduct an onsite evaluation of a proposed location. Baya Bar Franchise Systems, LLC offers standard specifications and layouts for building and furnishing the shop, a list of approved products and suppliers, and a pre-opening training program for up to three people. The franchisor also sends a representative for six days of onsite support and training during the initial opening. Once open, Baya Bar Franchise Systems, LLC provides ongoing assistance through regular visits and evaluations to ensure quality standards. Franchisees receive advice and written materials, including updates to the operations manual, on managing the shop, new developments, and improvements. The franchisor also offers training programs and seminars, which may be mandatory. Additional onsite training or assistance is available upon request or if deemed necessary, for which franchisees must pay a per diem fee plus expenses. Baya Bar Franchise Systems, LLC administers a marketing fund, may designate maximum product prices, and holds meetings for franchisees to discuss new offerings and system changes.
Initial Training Hours
74
Training Location
Our affiliate's Forest Avenue location in Staten Island, New York, or franchisee's location
Ongoing Support
After a Baya Bar franchise opens, the franchisor provides continuing assistance through periodic visits and evaluations of the shop, products, and services to maintain high quality. Franchisees receive advice and written materials, including updates to the operations manual, regarding management techniques, new developments, and improvements in equipment, food products, packaging, and preparation. Baya Bar Franchise Systems, LLC also offers ongoing training programs and seminars, which may be mandatory for franchisees and their personnel. Additional onsite training or assistance at the shop is available upon request or if deemed necessary, for a per diem fee plus expenses. The franchisor administers the marketing fund, may designate maximum prices for products, and may hold meetings for franchisees to discuss new menu offerings, operational standards, and provide additional training.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Baya Bar Franchise Systems, LLC defines its franchise territories in two ways: for suburban markets, a designated territory will be a three-mile radius around the Baya Bar shop; for urban markets, the designated territory will include a population of 50,000 residents.
Staffing Notes
Baya Bar Franchise Systems, LLC requires franchisees to designate and retain a General Manager at all times to direct the daily operation and management of the shop. While the franchisor recommends the franchisee serve as the General Manager, it is not required. The General Manager must meet Baya Bar Franchise Systems, LLC's educational and business criteria, be individually acceptable to the franchisor, and dedicate full-time effort to supervising and managing the shop. The General Manager, and any other personnel with access to confidential information, must sign confidentiality and non-competition agreements. Franchisees are responsible for hiring and training additional staff as needed, with initial pre-opening training provided by the franchisor for up to three people including the General Manager.