Is the Franchisor obligated to contribute to the Baya Bar Brand Fund?

According to Baya Bar's 2024 Franchise Disclosure Document, the franchisor has no obligation to contribute to the Brand Fund. While Baya Bar may choose to contribute to the Brand Fund on the same basis as its franchisees for company-operated outlets or those run by its affiliates, it is not required to do so.

This means that franchisees cannot rely on the franchisor to supplement the Brand Fund. The Brand Fund is primarily supported by franchisee contributions, which are set at one percent (1%) of the Gross Revenue generated weekly by the franchisee's Baya Bar location. Baya Bar retains the right to increase this contribution up to a maximum of three percent (3%) of Gross Revenue.

Franchisees should be aware that the Brand Fund is used for national advertising and marketing programs, with Baya Bar having sole discretion over the creative concepts, materials, and media used. The fund aims to maximize public recognition of the Baya Bar brand and enhance the collective success of all franchised businesses. While the franchisor intends for the Brand Fund to be perpetual, it can be terminated at any time, provided the remaining funds are spent on advertising or returned to the contributors.