Can Baya Bar grant licenses for the use of its trademarks to entities other than franchisees?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
The license to use the Marks granted in the Franchise Agreement is non-exclusive to you. We have and retain certain rights in the Marks including the following:
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- To grant other licenses for the use of the Marks in addition to those licenses already granted or to be granted to franchisees;
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- To develop and establish other systems using the Marks or other names or marks, and to grant licenses or franchises in those systems without providing any rights to you; and
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- To engage, directly or indirectly, at wholesale, retail or otherwise, in (a) the production, distribution, license and sale of products and services and (b) the use of the Marks and any and all trademarks, trade names, service marks, logos, insignia, slogans, emblems, symbols, designs and other identifying characteristics we may develop for that purpose.
Source: Item 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar retains the right to grant licenses for the use of its trademarks to entities other than its franchisees. The franchise agreement grants franchisees a non-exclusive license to use Baya Bar's marks.
Baya Bar explicitly reserves the right to grant other licenses for the use of its marks, in addition to those granted to franchisees. This means that Baya Bar could potentially authorize other businesses, individuals, or entities to use its trademarks without providing any rights to existing franchisees. They can also develop other systems using the marks and grant licenses or franchises in those systems without providing any rights to the franchisee.
Furthermore, Baya Bar retains the right to engage directly or indirectly in the production, distribution, licensing, and sale of products and services using its trademarks. This includes the use of any trademarks, trade names, service marks, logos, and other identifying characteristics that Baya Bar may develop. This could potentially lead to increased competition for franchisees if Baya Bar decides to license its trademarks to other businesses in the same market.