Can a Baya Bar franchisee advertise in a manner that may adversely affect the rights of the franchisor?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.7 Franchisee's Use of the Intellectual Property. With respect to Franchisee's use of the Intellectual Property pursuant to this Agreement, Franchisee further agrees that:
- 14.7.1 Unless otherwise authorized or required by Franchisor, Franchisee shall advertise the Franchised Business only under the Marks "Baya Bar" and design. Franchisee shall not use the Marks as part of its corporate or other legal name. All fictitious names used by Franchisee shall bear the designation "a franchisee of Baya Bar Franchise Systems, LLC"
- 14.7.2 Franchisee shall identify itself as the owner of the Franchised Business and as an independent Baya Bar franchisee in conjunction with any use of the Intellectual Property, including, but not limited to, uses on invoices, order forms, receipts and contracts, as well as the display of a notice in such content and form and at such conspicuous locations on the premises of the Franchised Business as Franchisor may designate in writing.
- 14.7.3 Franchisee shall not use the Intellectual Property to incur any obligation or indebtedness on behalf of Franchisor.
- 14.7.4 Any item offered by Franchisee that contains the Marks, must be approved by Franchisor in writing prior to being distributed or sold by Franchisee and such approval may be granted or denied in Franchisor's sole and absolute discretion.
- 14.8 Claims. Franchisee shall notify Franchisor immediately via both email and telephone, of any apparent infringement of or challenge to Franchisee's use of any Intellectual Property and of any claim by any person of any rights in any
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, franchisees are restricted in how they can advertise to protect the franchisor's intellectual property rights. Baya Bar requires that franchisees advertise their franchised business only under the marks "Baya Bar" and design, unless otherwise authorized or required by the franchisor. Franchisees cannot use these marks as part of their corporate or legal name, and all fictitious names must include the designation "a franchisee of Baya Bar Franchise Systems, LLC".
Baya Bar franchisees must identify themselves as the owner of the franchised business and as an independent Baya Bar franchisee when using the intellectual property, including on invoices, order forms, receipts, and contracts. They must also display a notice in a conspicuous location on the premises, as designated by the franchisor. Franchisees are prohibited from using Baya Bar's intellectual property to incur any obligation or indebtedness on behalf of the franchisor.
Furthermore, any item offered by the franchisee that contains Baya Bar's marks must receive written approval from the franchisor before distribution or sale, which the franchisor can grant or deny at their discretion. Franchisees are required to immediately notify Baya Bar via email and telephone of any apparent infringement or challenge to the franchisee's use of any intellectual property. These measures ensure that franchisees do not take actions that could negatively impact the franchisor's rights regarding its intellectual property.