For a Baya Bar franchise, what role must be designated and retained at all times?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
You are required to contribute 1% of your Gross Sales weekly to our System, Baya Bar Shops and the products and services offered by Baya Bar Shops. (Franchise Agreement, Section 8.3.) Each Baya Bar outlet operated by our affiliates or us may, but is not obligated to, contribute to the Marketing Fund on the same basis as System franchisees. All franchisees will contribute the same percentage to the Fund.
The Marketing Fund is administered by our owner William Loesch. We may use Marketing Fund contributions to pay any and all costs for developing, producing and disseminating advertising, marketing, promotional and public relations materials, programs, campaigns, sales and marketing seminars and training programs of every kind and nature, through any media we determine; conducting marketing research and employing advertising agencies; developing, enhancing and maintaining our website, social media platforms, apps, and other technology for the benefit of the Marketing Fund image and/or Systemwide
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 42–43)
What This Means (2024 FDD)
Based on the 2024 Baya Bar Franchise Disclosure Document, the Marketing Fund is administered by William Loesch, who is the owner of Baya Bar. The document states that the franchisor may use the Marketing Fund contributions to cover various costs related to advertising, marketing, promotional materials, programs, campaigns, seminars, training programs, marketing research, advertising agencies, website development, social media platforms, apps, technology improvements, staff salaries, and other personnel and departmental costs for advertising that Baya Bar internally administers or prepares.
This means that William Loesch, or someone designated by Baya Bar, is responsible for managing the funds collected from franchisees, which are earmarked for marketing and advertising activities. As a franchisee, it is important to understand how these funds are being used to promote the Baya Bar brand and support the overall growth of the franchise system.
The franchisee contributes 1% of gross sales weekly to the marketing fund. The franchisor and its affiliates may also contribute to the marketing fund, but are not obligated to do so. All franchisees contribute the same percentage to the fund.