Is the Baya Bar franchise territory defined in Attachment 3 of the franchise agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
2. GRANT OF FRANCHISE. Franchisor hereby grants to Franchisee and Franchisee accepts, upon the terms and conditions contained in this Agreement, the license to operate a Baya Bar acai shop franchise (the "Franchise" or " the Franchised Business"), using only the Marks licensed hereunder, in strict conformity with the System, which may be changed, improved and further developed by Franchisor from time to time. This grant applies only to a single location within a territory that is designated in Attachment 3 attached hereto and incorporated herein (the "Territory").
3. TERRITORY
- 3.1 Territory.
This Agreement grants Franchisee the right to operate the Franchised Business at a single location and from within the Territory.
Subject to Section 3.2 below, Franchisor agrees that during the Term of this Agreement, Franchisor will not operate, and will not authorize any other franchisees to operate, a Baya Bar outlet in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not been terminated.
Except as otherwise specified in this Agreement, Franchisor reserves the right to open, operate or franchise Baya Bar franchises bordering and adjacent to the Territory.
Except as set forth in this Agreement, Franchisee is prohibited from serving and soliciting customers outside of the Territory and from alternative methods of distribution as more fully specified herein.
- 3.2 Reservation of Rights.
Franchisee understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchise agreement grants the franchisee the right to operate a Baya Bar acai shop at a single location within a designated territory. This territory is specifically defined in Attachment 3 of the franchise agreement.
The franchise agreement ensures that, during its term, Baya Bar will not operate or authorize other franchisees to operate a Baya Bar outlet within the franchisee's designated territory, provided the franchisee remains in compliance with the agreement. However, Baya Bar retains the right to open, operate, or franchise Baya Bar locations bordering or adjacent to the franchisee's territory.
The franchisee is restricted from soliciting customers or offering services outside their designated territory, and alternative methods of distribution are also limited as specified in the agreement. All rights to businesses not explicitly granted in the agreement are reserved to Baya Bar, both within and outside the franchisee's territory.