What is considered a 'Non-Traditional Site' for a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Nothing in the Franchise Agreement will prohibit us from: (1) operating and/or franchising others to operate shops identified in whole or in part by the Proprietary Marks and/or utilizing the System in the Designated Territory that are located in gas stations or convenience stores; transportation facilities, including airports, train stations, subways and rail and bus stations; military bases and government offices; sports facilities, including stadiums and arenas; amusement parks, zoos and convention centers; car and truck rest stops and travel centers; educational facilities; recreational theme parks; hospitals; hotels; business or industrial foodservice venues; venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider; Indian reservations; casinos; or any similar captive market location not reasonably available to you (a "Non-Traditional Site"); (2) awarding national, regional or local licenses to third parties to sell products under the Proprietary Marks in foodservice facilities primarily identified by the third party's trademark; (3) merchandising and distributing products identified by the Proprietary Marks in the Designated Territory through any method or channel of distribution other than through the operation of a shop, including distribution of products (including any proprietary products) through grocery stores, club stores and similar stores; (4) selling and distributing products identified by the Proprietary Marks in the Designated Territory to shops other than Shops identified by the Proprietary Marks, regardless of whether the shops are licensed to use the Proprietary Marks in connection with their retail sales or not; (5) selling products and services through other channels of distribution, including the internet, wholesale, mail order and catalog; (6) developing and/or owning other franchise systems for the same or similar products and services using trade names and trademarks other than the Proprietary Marks; and (7) purchasing, being purchased by, merging or combining with businesses that we deem to offer direct competition to Baya Bar Shops. We are not required to pay you any consideration if we exercise any right specified above in the Designated Territory.
Source: Item 12 — TERRITORY (FDD pages 36–40)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a 'Non-Traditional Site' encompasses various locations where Baya Bar may operate or franchise others to operate. These sites are typically captive market locations not readily available to franchisees.
Specifically, Non-Traditional Sites include locations such as gas stations, convenience stores, transportation facilities (airports, train stations, subways, rail and bus stations), military bases, government offices, sports facilities (stadiums and arenas), amusement parks, zoos, convention centers, car and truck rest stops, travel centers, educational facilities, recreational theme parks, hospitals, hotels, business or industrial foodservice venues, venues with master concessionaires or contract foodservice providers, Indian reservations, and casinos.
For a prospective Baya Bar franchisee, understanding the concept of Non-Traditional Sites is crucial because the franchisor retains the right to operate or franchise these locations, even within a franchisee's designated territory. If a Non-Traditional Site is within a franchisee's territory, that specific site is excluded from the franchisee's territory, meaning the franchisee has no rights to it. This can impact a franchisee's potential market and revenue, as these locations often have high foot traffic.
Baya Bar also retains the right to award licenses to third parties to sell products under its trademarks in foodservice facilities identified by the third party's trademark, as well as merchandising and distributing products through various channels like grocery stores and club stores. These activities can occur within a franchisee's designated territory without any compensation to the franchisee. Therefore, franchisees should carefully consider the potential impact of Non-Traditional Sites and alternative distribution channels on their business when evaluating a Baya Bar franchise opportunity.