Can a Baya Bar franchisee place advertisements on television and radio 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.
However, the FDD clarifies that it is not a violation of the Franchise Agreement if these advertisements are inadvertently viewed by prospective customers outside of the Designated Territory due to the natural circulation of the printed media or the reach of television and radio. This acknowledges the practical limitations of precisely targeting advertising in these mediums.
It is important to note that while franchisees can advertise in printed media, television, and radio, they are restricted from engaging in promotional activities or selling products or services through the internet, world wide web, or similar electronic delivery systems. They are also prohibited from using catalogs or other mail order devices, or telephonic communications directed to customers outside of their Designated Territory. Franchisees are also prohibited from directly soliciting customers outside of their Designated Territory.