Does Baya Bar have the option to purchase furnishings, equipment, signs, advertising materials, supplies, and inventory from the franchisee upon termination or expiration of the Franchise Agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
. In no event shall Franchisee have recourse against Franchisor for loss of revenue, customer goodwill, profits or other business arising from Franchisor's actions and the actions of suppliers.
18. POST-TERMINATION
- 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;
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Baya Bar franchise agreement outlines the franchisee's obligations upon termination or expiration, but it does not explicitly state that Baya Bar has the option or obligation to purchase furnishings, equipment, signs, advertising materials, supplies or inventory from the franchisee. Instead, the agreement stipulates that upon termination, the franchisee must cease operating the Baya Bar business and discontinue using Baya Bar's trademarks, designs, and copyrighted materials.
Specifically, the franchisee is required to stop using all signs, billboards, advertising materials, displays, stationery, and any other items displaying Baya Bar's marks. Additionally, the franchisee must take necessary actions to cancel any assumed name registrations containing Baya Bar's trademarks and provide evidence of compliance to Baya Bar.
The franchise agreement also states that the franchisee is obligated to promptly pay all sums owed to Baya Bar and its affiliates, which may include damages, costs, and expenses resulting from any default by the franchisee. To secure this payment obligation, Baya Bar retains a lien against the franchisee's personal property, furnishings, equipment, fixtures, and inventory located at the franchised business at the time of default. However, there is no mention of Baya Bar purchasing these items.