After the Baya Bar Franchise Agreement is terminated or expires, what happens to the rights and licenses granted to the franchisee?
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
trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within five (5) days after termination or expiration of this Agreement;
18.1.4 promptly pay all sums owing to Franchisor and its affiliates.
Such sums shall include all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of any default by Franchisee.
The payment obligation herein shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the personal property, furnishings, equipment, fixtures, and inventory owned by Franchisee and located at the Franchised Business location at the time of default;
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, 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 themselves as a current Baya Bar owner, franchisee, or licensee.
Specifically, the franchisee must immediately and permanently stop using Baya Bar's trademarks, designs, copyrighted material, intellectual property, and any confidential information associated with the franchise. This includes refraining from using any trade names, service marks, or commercial symbols that suggest an association with Baya Bar or its affiliates. The franchisee is required to remove all signs, advertising materials, displays, stationery, and any other items displaying Baya Bar's marks.
Furthermore, the franchisee must take necessary actions to cancel any assumed name registrations that contain Baya Bar's trademarks or service marks. Evidence of compliance with this obligation must be provided to Baya Bar within five days after the termination or expiration of the agreement. The franchisee is also responsible for promptly paying all sums owed to Baya Bar and its affiliates, which may include damages, costs, expenses, and reasonable attorneys' fees resulting from any default by the franchisee. This payment obligation creates a lien in favor of Baya Bar against the franchisee's personal property, furnishings, equipment, fixtures, and inventory located at the franchised business.