Does any officer of Baya Bar have an ownership interest in any approved supplier?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently neither we nor any affiliate of ours is an approved supplier for any product or service you must purchase or lease, but we may become an approved or designated supplier in the future. If we or an affiliate are an approved or designated supplier, we may earn a profit from the sale of items and services to our franchisees. None of our officers has an ownership interest in any approved supplier, except William Loesch has an ownership interest in Vuda Media S Corp.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, it is disclosed that none of their officers has an ownership interest in any approved supplier, except for William Loesch, who has an ownership interest in Vuda Media S Corp.
Vuda Media S Corp is Baya Bar's designated supplier for web and social media management and branding. As a franchisee, you are required to use Vuda Media S Corp's services for all web and social media marketing needs. Vuda Media S Corp is located at 8701 Shore Road, Brooklyn, New York, 11209.
This arrangement means that a Baya Bar officer benefits directly from the mandatory use of Vuda Media S Corp by franchisees. While this is disclosed, prospective franchisees should evaluate whether the services provided by Vuda Media S Corp are fairly priced and effective, as there may be a conflict of interest. It is common in franchising for franchisors to have approved suppliers, but it is less common for an officer to have a direct ownership stake in a required vendor.