factual

What rights, titles, and interests are being assigned to Baya Bar Franchise Systems, LLC?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

al place of business located at | | and | 's principals | | , an individual residing at | and | | , an individual residing at | | | ("Principal(s)"). | and Principal(s) shall be | | collectively referred to in this Agreement as the "Franchisee". | | WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for a Baya Bar business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, and use telephone listings linked to the Baya Bar brand.

WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Agreement;

NOW, THEREFORE, for and in consideration of the foregoing and the mutual promises and covenants contained herein, and in further consideration of the Franchise Agreement and the mutual promises and covenants contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Definitions

All terms used but not otherwise defined in this Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.

2. Internet Advertising and Telephone Listings

  • 2.1 Interest in Websites, Social Media and Software Accounts, and Other Electronic Listings. Franchisee may acquire (whether in accordance with or in violation of the Franchise Agreement) during the term of Franchise Agreement, certain right, title, or interest in and to certain domain names, social media accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines (collectively, "Electronic Advertising") related to the Franchised Business or the Marks.
  • 2.2 Interest in Telephone Numbers and Listings. Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain

telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.

  • 2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
  • 2.3.1 direct all internet service providers, domain name registries, internet search engines, social media companies, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Electronic Advertising: (i) to transfer all of Franchisee's interest in such Electronic Advertising to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Electronic Advertising, Franchisee will immediately direct the Internet Companies to terminate such Electronic Advertising or will take such other actions with respect to the Electronic Advertising as Franchisor directs; and
  • 2.3.2 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.
  • 2.4 Appointment; Power of Attorney. Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Agreement. Franchisee further agrees that this appointment constitutes a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements to which Franchisee and any of its affiliates on the one hand, and Franchisor and any of its affiliates on the other, are parties, including without limitation this Agreement.

Source: Item 22 — CONTRACTS (FDD page 56)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, franchisees may acquire rights, titles, or interests in domain names, social media accounts, and website URLs related to the Baya Bar brand during the term of the Franchise Agreement. These are collectively referred to as "Electronic Advertising." Additionally, franchisees may acquire rights, titles, and interests in telephone numbers and directory listings related to the franchised business or the Baya Bar Marks, known as "Telephone Listings."

Upon termination of the Franchise Agreement, or if periodically requested by Baya Bar, the franchisee must immediately transfer all rights, titles, and interests in the Electronic Advertising and Telephone Listings to Baya Bar. This includes providing Baya Bar with access and control over these assets. This transfer ensures that Baya Bar maintains control over its brand's online presence and customer communication channels.

Furthermore, the FDD includes a table outlining a Conditional Assignment of Lease, where the landlord agrees to notify Baya Bar Franchise Systems, LLC (as Assignee) of any default by the franchisee (Assignor) under the lease. Baya Bar has the right, but not the obligation, to cure any default by the franchisee within 30 days of receiving notice from the landlord. The landlord also consents to the Conditional Assignment, agreeing to recognize Baya Bar as the tenant if Baya Bar takes possession of the premises and confirms assumption of the lease, provided Baya Bar cures any non-monetary defaults of the franchisee within the 30-day period. This assignment allows Baya Bar to maintain control over the location and continue operations if a franchisee defaults.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.