What documents is a Baya Bar franchisee allowed to retain after termination of the Franchise Agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.1 Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal, if any, shall:
- 18.1.1 immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly identify himself, herself or itself as a current Baya Bar owner, franchisee or licensee;
- 18.1.2 immediately and permanently cease to use the Marks, any imitation of any Mark, Franchisor's designs, copyrighted material or other intellectual property, confidential or proprietary material or indicia of the Franchised Business, or use any trade name, trade or service mark or other commercial symbol that suggests an association with Franchisor, and/or Franchisor's affiliate(s), or the System. In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms and any other articles, which display the Marks;
- 18.1.3 take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
The 2024 Baya Bar Franchise Disclosure Document does not explicitly state which documents a franchisee is allowed to retain after the termination of the Franchise Agreement. However, it does specify what a franchisee must do with certain materials upon termination.
Specifically, upon termination or expiration of the Franchise Agreement, all rights and licenses granted to the franchisee immediately terminate. The franchisee must cease operating the Baya Bar business and cannot identify as a current Baya Bar owner or franchisee. The franchisee must also immediately stop using Baya Bar's trademarks, designs, copyrighted material, and other intellectual property. This includes refraining from using signs, advertising materials, displays, stationery, and forms that display the Baya Bar marks.
Furthermore, the franchisee is required to take necessary actions to cancel any assumed name registrations that contain Baya Bar's trademarks and provide evidence of compliance to Baya Bar. The franchisee is obligated to promptly pay all outstanding sums to Baya Bar and its affiliates, which may include damages, costs, expenses, and attorney's fees resulting from any default by the franchisee. Since the FDD does not list any documents that the franchisee can retain, it is best to clarify with the franchisor during the due diligence process.