What happens to rights under previous contracts when signing the Baya Bar Franchise Agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Marks or other trademarks, and (iii) products or services through any channel in the Development Area other than a dedicated Baya Bar café such as distribution through retail outlets, including but not limited to, grocery stores; in captive market locations, such as airports and malls; and the Internet.
- 2.3 No License to System and Marks. Developer expressly acknowledges that this Agreement is not a Franchise Agreement and does not grant to Developer any right or license to operate a Baya Bar outlet, distribute any product or service, or use the Marks. This Agreement sets forth conditions which, if fully satisfied, confer upon Developer the rights to enter a Franchise Agreement with Franchisor to establish one or more Baya Bar outlets in the Development Area only.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the Multi-Unit Development Agreement outlines the conditions under which a developer can enter into a Franchise Agreement with Baya Bar. This agreement itself does not grant any rights to operate a Baya Bar outlet or use their trademarks. These rights are only obtained through the execution of a separate Franchise Agreement for each Baya Bar location to be established in the designated Development Area.
The Multi-Unit Development Agreement specifies that it sets forth the conditions that, when fully met, allow the developer to enter into a Franchise Agreement with Baya Bar. The developer's rights to operate a Baya Bar and use the brand's system and marks are exclusively derived from the individual Franchise Agreements executed for each outlet.
Furthermore, the obligations of the developer that require performance even after the termination, expiration, or transfer of the Multi-Unit Development Agreement will continue to be enforced. The expiration or termination of the agreement does not release the developer from any accrued or ongoing liabilities or obligations.