Can Baya Bar impose an internal systems fee on franchisees?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
o ownership or other proprietary rights to Franchisor's website and Franchisee will lose all rights to such listing of Franchisee's location upon expiration or termination of this Agreement for any reason.
- 12.3.7 In addition to the requirements of Section 6.4, Franchisee shall pay all fees, whether to Franchisor or to third party vendor(s), and expenses for technology required by this Agreement for operation of the Franchised Business, including but not limited to, the costs of computer hardware and software and applications, installation costs and regularly recurring fees for software and digital menu displays, Internet access, license fees, help desk fees, and licensing or user-based fees.
- 12.4 Safety and Security of Premises. Franchisee is solely responsible for the safety and security of the Franchised Business location for Franchisee, Franchisee's personnel, customers, agents and the general public. Any suggestions by Franchisor on such matters are for guidance only and not binding on Franchisee. All matters of safety and security are within Franchisee's discretion and control, and Franchisee's indemnification obligations set forth in Section 15.6 hereof shall apply to any claims made against Franchisor regarding safety or security.
- 12.5 Prices. Subject to applicable law, Franchisor may recommend or set maximum prices for services and products offered by Franchisee, which may vary depending on geographic and other market conditions. Franchisee acknowledges that Franchisor has made no guarantee or warranty that offering services or products at any particular price will enhance Franchisee's sales or profits.
- 12.6 Unapproved Item/Suppliers.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees are responsible for technology fees and expenses required for the operation of the franchised business. These expenses include costs paid to Baya Bar or third-party vendors.
Specifically, the fees cover computer hardware, software, applications, installation, recurring software fees, digital menu displays, internet access, license fees, help desk fees, and user-based licensing fees. This means a Baya Bar franchisee should anticipate ongoing technology-related costs as part of their investment.
It is important to note that Baya Bar maintains control over the brand's website and can include the franchisee's business location on it. However, the franchisee gains no ownership rights to the website and loses the listing upon termination of the franchise agreement. Franchisees are also required to use the email account provided by Baya Bar and promptly respond to communications.