Is a Baya Bar franchisee allowed to engage in promotional activities on the internet?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
You may sell our menu items to customers who live anywhere but who choose to dine at or from your Shop. You may not engage in any promotional activities or sell products or services, whether directly or indirectly, through or on the internet, the world wide web, or any other similar proprietary or common carrier electronic delivery system; through catalogs or other mail order devices sent or directed to customers or prospective customers located anywhere; or by telecopy or other telephonic or electronic communications, including toll-free numbers, directed to or received from customers or prospective customers located anywhere. While you may place advertisements in printed media and on television and radio that are targeted to customers and prospective customers located within your Designated Territory, you will not be deemed to be in violation of the Franchise Agreement if those advertisements, because of the natural circulation of the printed media or reach of television and radio, are viewed by prospective customers outside of your Designated Territory. You may not directly solicit customers outside of your Designated Territory.
Source: Item 12 — TERRITORY (FDD pages 36–40)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees face restrictions on internet-based promotional activities and sales. Specifically, franchisees are prohibited from engaging in any promotional activities or selling products or services through the internet, the world wide web, or any similar electronic delivery system. This restriction extends to catalogs or other mail order devices and telephonic or electronic communications directed to customers or prospective customers, regardless of their location.
While Baya Bar franchisees cannot directly solicit customers outside their designated territory, they are permitted to place advertisements in printed media, television, and radio targeted to customers within their designated territory. The FDD clarifies that if these advertisements reach prospective customers outside the designated territory due to the natural circulation or reach of the media, it will not be considered a violation of the Franchise Agreement.
Baya Bar and its affiliates retain the right to sell products under the brand's trademarks within and outside a franchisee's designated territory through various methods of distribution, including the internet, catalog sales, grocery stores, and telemarketing. Franchisees are not allowed to use these alternative distribution channels and will not receive compensation for sales made through them. The franchisor will fulfill all orders placed through the retail portion of their website, and franchisees are not entitled to any portion of the profits, even if the order originates from or is delivered to an address within their designated territory.