Can Baya Bar purchase, merge, acquire or affiliate with a competitive franchise network?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisor assigns its rights in this Agreement, nothing herein shall be deemed to require Franchisor or any of its affiliates to remain in any line of business or to offer or sell any products or services to Developer.
- 8.3.1 During the term of this Agreement, Developer shall not, either directly or indirectly, for himself or herself or through, on behalf of, or in conjunction with, any person or entity (i) divert, or attempt to divert, any business or customer of the Developer's Baya Bar outlets or of other developers or franchisees in the System to any competitor, by direct or indirect inducement or otherwise; (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any retail or café business featuring acai or similarly prepared smoothies or bowls; or (iii) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or (iv) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Baya Bar developers or franchisees or Franchisor-affiliated outlets.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
The 2024 Baya Bar Franchise Disclosure Document does not explicitly state whether Baya Bar can purchase, merge, acquire, or affiliate with a competitive franchise network. However, the document does state that if Baya Bar assigns its rights in the agreement, nothing requires Baya Bar or its affiliates to remain in any line of business or to offer or sell any products or services to the developer.
On the other hand, the document does include non-compete clauses for the developer. During the term of the agreement, the developer cannot participate as an owner, partner, director, officer, employee, consultant, or agent in any retail or café business featuring acai or similarly prepared smoothies or bowls. The developer also cannot perform any act injurious or prejudicial to the goodwill associated with the Baya Bar marks and system or interfere with the business of Baya Bar or its franchisees.
Because the FDD does not directly address the question, it is important for a prospective franchisee to ask the franchisor directly about any restrictions on Baya Bar's ability to purchase, merge, acquire, or affiliate with a competitive franchise network. Understanding these potential changes to the franchise system is crucial for making an informed investment decision.