What conditions must Baya Bar meet when purchasing the franchisee's assets?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
iness franchised herein or to offer the same products and services, whether or not bearing the Marks, in the event that Franchisor exercises its prerogative hereunder to assign Franchisor's rights in this Agreement.
- 16.1.2 Franchisee agrees that Franchisor has the right, now or in the future, to purchase, merge, acquire or affiliate with an existing competitive or noncompetitive franchise network, chain or any other business regardless of the location of that chain's or business' facilities, and to operate, franchise or license those businesses and/or facilities operating under the Marks or any other marks following Franchisor's purchase, merger, acquisition or affiliation, regardless of the location of the facilities (which Franchisee acknowledges may be within the Territory, proximate thereto, or proximate to any of Franchisee's locations). However, Franchisor represents that it will not convert any such acquired facilities that are operating within the Territory to a Baya Bar franchise during the Term of this Agreement.
- 16.1.3 If Franchisor assigns its rights in this Agreement, nothing herein shall be deemed to require Franchisor to remain in the food and beverage business or to offer or sell any products or services to Franchisee.
- 16.2 Restrictions on Transfers by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Baya Bar retains the right to purchase, merge, acquire, or affiliate with any competitive or noncompetitive franchise network. However, Baya Bar states that they will not convert any acquired facilities operating within the franchisee's territory into a Baya Bar franchise during the agreement term.
Furthermore, the franchisee cannot directly or indirectly sell, assign, transfer, or encumber the agreement, franchise, franchised business, or any related assets without prior written consent from Baya Bar. This restriction does not apply to asset sales in the ordinary course of business. Baya Bar can also void any transfer made without their approval.
If the Franchise Agreement terminates, the franchisee must transfer all rights and interests in electronic advertising and telephone listings to Baya Bar. This includes domain names, social media accounts, website content, telephone numbers, and directory listings related to the Baya Bar brand.