Will a Baya Bar franchisee receive compensation for the franchisor's sales through alternate distribution channels made within the franchisee's territory?

According to Baya Bar's 2024 Franchise Disclosure Document, franchisees will not receive compensation for the franchisor's sales through alternate distribution channels within their territory. Baya Bar retains the right to offer products or services through channels other than the franchisee's dedicated acai shop. These alternate channels include distribution through retail outlets like grocery stores, captive market locations such as airports and malls, and the Internet.

This policy means that Baya Bar can sell its products directly to customers within a franchisee's territory through these alternative methods without sharing any of the revenue with the franchisee. The FDD states that the franchisee acknowledges that this arrangement does not impair or injure their rights under the agreement.

For a prospective franchisee, this is a crucial point to consider. While franchisees are granted a specific territory, Baya Bar reserves significant rights to sell within that same territory through other channels. This could potentially impact the franchisee's sales and profitability, as customers might opt to purchase Baya Bar products from these alternative sources instead of the franchisee's store. It is important to understand the potential impact of these alternative distribution channels on the franchisee's business before investing in a Baya Bar franchise.