During the term of the Baya Bar agreement, can franchisees or principals interfere with the business of other Baya Bar franchisees?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
19.5.1 During the term of this Agreement, Franchisee and each Principal, if any, shall not, either directly or indirectly, for themselves 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 Franchised Business or of other 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 café or business serving products similar to the System; 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 franchisees or Franchisor-affiliated outlets.
19.5.2 Upon the expiration or earlier termination of this Agreement or upon a Transfer and continuing for twenty-four (24) months thereafter, Franchisee and Principals, if any, shall not, either directly or indirectly, for themselves 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 Franchised Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; or (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any café or business serving products similar to the System within five (5) miles of the Territory or any Baya Barlocation; 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 franchisees.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, franchisees and their principals are prohibited from interfering with the business of other Baya Bar franchisees during the term of their agreement. Specifically, franchisees and principals cannot directly or indirectly take actions that disrupt or jeopardize the business of the franchisor or any Baya Bar franchisees.
This restriction aims to protect the Baya Bar brand and the interests of all franchisees within the system. By preventing interference, Baya Bar seeks to maintain a stable and cooperative network where franchisees can operate without undue disruption from one another. This clause ensures that franchisees focus on growing their own businesses rather than engaging in activities that could harm the overall brand or other franchisees' operations.
The franchise agreement specifies that franchisees and principals are not allowed to divert business or customers to competitors, participate in similar businesses, or perform any actions that could harm the goodwill associated with the Baya Bar brand. These restrictions are in place to ensure fair competition and protect the brand's reputation. Franchisees should be aware that violating these terms could result in legal action or termination of their franchise agreement.
After the agreement ends, the franchisee and principals are restricted for twenty-four (24) months from interfering with the business of the Franchisor or any Baya Bar franchisees.