Under what circumstances must a Baya Bar franchisee immediately discontinue the use of a Mark?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
hisee's default is cured. 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)
According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee must immediately cease using Baya Bar's marks under two primary circumstances: upon termination or expiration of the Franchise Agreement, or upon notice from the franchisor regarding unapproved advertising or promotional materials.
Upon termination or expiration of the agreement, the franchisee must immediately stop operating the franchised business and cannot identify themselves as a current Baya Bar owner, franchisee, or licensee. They must also immediately and permanently cease using the Marks, any imitation of the Mark, Baya Bar's designs, copyrighted material, or other intellectual property that suggests an association with Baya Bar. This includes discontinuing the use of all signs, billboards, advertising materials, displays, stationery, and forms that display the Marks.
Additionally, Baya Bar franchisees must promptly discontinue the use of any advertising or promotional plans or materials upon notice from Baya Bar, regardless of whether those materials were previously approved. If a franchisee submits advertising or promotional materials to Baya Bar for approval, and Baya Bar fails to respond within ten business days, the plans are deemed disapproved, and the franchisee cannot use them until written approval is obtained. This ensures that all marketing efforts align with Baya Bar's brand standards and protects the integrity of the Marks.
These stipulations are typical in franchising, as franchisors need to maintain tight control over their brand and intellectual property. Franchisees should be aware of these requirements and ensure they adhere to them to avoid legal issues or penalties.