What happens if a Baya Bar franchisee terminates the agreement without cause?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.1 Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal, if any, shall:
- 18.1.1 immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly identify himself, herself or itself as a current Baya Bar owner, franchisee or licensee;
- 18.1.2 immediately and permanently cease to use the Marks, any imitation of any Mark, Franchisor's designs, copyrighted material or other intellectual property, confidential or proprietary material or indicia of the Franchised Business, or use any trade name, trade or service mark or other commercial symbol that suggests an association with Franchisor, and/or Franchisor's affiliate(s), or the System. In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms and any other articles, which display the Marks;
- 18.1.3 take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or
trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within five (5) days after termination or expiration of this Agreement;
18.1.4 promptly pay all sums owing to Franchisor and its affiliates.
Such sums shall include all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of any default by Franchisee.
The payment obligation herein shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the personal property, furnishings, equipment, fixtures, and inventory owned by Franchisee and located at the Franchised Business location at the time of default;
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, if a Baya Bar franchisee terminates the franchise agreement, all rights and licenses granted to the franchisee are immediately terminated. The franchisee must immediately cease operating the Baya Bar business and cannot identify themselves as a current Baya Bar owner or franchisee. They must also stop using Baya Bar's trademarks, designs, copyrighted material, and other intellectual property.
Specifically, the franchisee must discontinue using all signs, advertising materials, displays, stationery, and forms that display Baya Bar's marks. The franchisee is also required to take necessary actions to cancel any assumed name registrations that contain Baya Bar's trademarks and provide evidence of compliance to Baya Bar within five days of termination or expiration.
Furthermore, the franchisee must promptly pay all outstanding sums to Baya Bar and its affiliates, including damages, costs, expenses, and reasonable attorneys' fees incurred by Baya Bar due to any default by the franchisee. This payment obligation creates a lien in favor of Baya Bar against the franchisee's personal property, furnishings, equipment, fixtures, and inventory located at the franchised business.