Is a Baya Bar franchisee permitted to comment to any broadcast medium regarding the Franchised Business without the Franchisor's direction?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.3.5 Franchisee shall have and maintain adequate hardware and software in order to access the Internet at the speed required by Franchisor from time to time.
Franchisee shall utilize the electronic mail account provided by Franchisor.
Franchisee shall promptly read and respond to all electronic mail related to the Franchised Business no less often than on a daily basis and shall accept and acknowledge receipt of all electronic mail sent by Franchisor.
Franchisee shall not establish any website or other listing on the Internet except as provided and specifically permitted herein.
- 13.3.4 Franchisor may use the Brand Fund to satisfy any and all costs of developing, preparing, producing, directing, administering, conducting, maintaining and disseminating advertising, marketing, promotional and public relations materials, programs, campaigns, sales and marketing seminars and training programs of every kind and nature, through media now existing or hereafter developed (including, without limitation, the cost of television, radio, magazine, social media, newspaper and electronic advertising campaigns; direct mail and outdoor billboard advertising; public relations activities; conducting marketing research, employing advertising agencies to assist therein; developing, enhancing and maintaining the Website, social media platforms, apps, and other technology for the benefit of the Baya Bar brand image and/or Systemwide improvements; and staff salaries and other personnel and departmental costs for advertising that Franchisor internally administers or prepares).
- 19.5.1 During the term of this Agreement, Franchisee and each Principal, if any, shall not, either directly or indirectly, for themselves or through, on behalf of, or in conjunction with, any person or entity (i) divert, or attempt to divert, any business or customer of the Franchised Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any café or business serving products similar to the System; or (iii) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or (iv) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Baya Bar franchisees or Franchisor-affiliated outlets.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
Based on the 2024 Baya Bar Franchise Disclosure Document, the excerpt provided does not explicitly state whether a franchisee is permitted to comment to any broadcast medium regarding the franchised business without the franchisor's direction. However, the document does state that the franchisor may use the Brand Fund for public relations activities. Also, the franchisee is not allowed to establish any website or other listing on the Internet except as provided and specifically permitted in the franchise agreement. The agreement also states that the franchisee shall not do any act injurious or prejudicial to the goodwill associated with the Marks and the System or in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Baya Bar franchisees or Franchisor-affiliated outlets.
Given the lack of explicit permission and the restrictions on internet presence and actions that could harm the brand, it would be prudent for a prospective Baya Bar franchisee to assume that commenting to broadcast media without the franchisor's consent is not allowed. This is a common practice in franchising, as franchisors typically want to control the brand's image and messaging.
To gain clarity, a prospective franchisee should directly ask Baya Bar's franchisor about their policy on franchisee communication with broadcast media. Understanding the specific guidelines and restrictions will help avoid potential breaches of the franchise agreement and maintain a positive relationship with the franchisor.