Is Baya Bar required to contribute to the Brand Fund for company-owned outlets?

According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar is not obligated to contribute to the Brand Fund for company-owned outlets. While franchisees are required to contribute to the Brand Fund, Baya Bar has the option, but not the requirement, to contribute to the Brand Fund on the same basis as franchisees for Baya Bar outlets operated by the company or its affiliates.

This means that while franchisees must allocate 1% of their gross revenue (up to a potential maximum of 3%) to the Brand Fund, Baya Bar itself can decide whether or not to contribute from its own company-operated stores. This could potentially create a situation where franchisees are consistently contributing to the Brand Fund, while the franchisor's corporate stores may or may not be contributing, depending on Baya Bar's discretion.

For a prospective franchisee, this is an important consideration. It highlights that the financial burden of the Brand Fund is explicitly placed on the franchisees, while the franchisor retains the flexibility to contribute or not. A potential franchisee might want to inquire about Baya Bar's historical contributions to the Brand Fund from company-owned stores to understand their commitment to the fund and to ensure transparency and fairness within the franchise system.