Can a Baya Bar franchisee acquire interest in Electronic Advertising in violation of the Franchise Agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.1 Interest in Websites, Social Media and Software Accounts, and Other Electronic Listings. Franchisee may acquire (whether in accordance with or in violation of the Franchise Agreement) during the term of Franchise Agreement, certain right, title, or interest in and to certain domain names, social media accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines (collectively, "Electronic Advertising") related to the Franchised Business or the Marks.
- 2.2 Interest in Telephone Numbers and Listings. Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee may acquire interest in Electronic Advertising, whether in accordance with or in violation of the Franchise Agreement. Electronic Advertising includes domain names, social media accounts, and website URLs related to the franchised business or the Baya Bar marks. The franchisee also has or will acquire interest in telephone numbers and listings related to the franchised business or the marks.
However, upon termination of the Franchise Agreement or at the franchisor's request, the franchisee must immediately transfer all rights and interests in the Electronic Advertising and Telephone Listings to Baya Bar. This includes executing assignment documents and providing passwords or access codes necessary for Baya Bar to control these assets. The franchisee must also discontinue using the Electronic Advertising and Telephone Listings and take steps to transfer or terminate them as directed by Baya Bar.
Baya Bar also requires that franchisees maintain adequate hardware and software to access the internet at the speed required by the franchisor. Franchisees must use the email account provided by Baya Bar and promptly respond to all emails related to the business on a daily basis. Franchisees are prohibited from establishing any website or other listing on the internet except as specifically permitted by the franchise agreement. Baya Bar maintains a website with information about the Baya Bar system, and while the franchisee's location will be listed on the website, the franchisee has no ownership or proprietary rights to it.