Can a Baya Bar franchisee place advertisements in printed media that are targeted to customers?
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. You have no options, rights of first refusal, or similar rights to acquire additional franchises. You may not sell any products to any business or other customer at wholesale.
Source: Item 12 — TERRITORY (FDD pages 36–40)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees are permitted to place advertisements in printed media, as well as on television and radio. These advertisements should target customers and prospective customers within the franchisee's Designated Territory. This allows franchisees to promote their Baya Bar location through traditional advertising channels to reach their local customer base.
However, the FDD also clarifies that Baya Bar franchisees must be mindful of the natural circulation or reach of these advertisements. If the printed media, television, or radio advertisements are viewed by prospective customers outside of the franchisee's Designated Territory due to their natural reach, the franchisee will not be considered in violation of the Franchise Agreement. This acknowledges the practical limitations of targeting advertising with absolute precision in these mediums.
Despite the permission to advertise in certain media, Baya Bar franchisees are explicitly prohibited from engaging in promotional activities or selling products or services through the internet, the world wide web, or any similar electronic delivery system. They are also restricted from using catalogs or other mail order devices, or telephonic communications directed to customers outside their Designated Territory. Furthermore, franchisees are not allowed to directly solicit customers outside of their Designated Territory. These restrictions highlight Baya Bar's strategy to control online sales and maintain territorial boundaries, ensuring that franchisees focus on their local market without encroaching on others.