Under what condition will Baya Bar authorize a franchisee to open their franchised business?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
erein, and intending to be legally bound hereby, mutually agree as follows:
1. RECITATIONS. The Recitations set out above form part of this Agreement.
2. GRANT OF FRANCHISE. Franchisor hereby grants to Franchisee and Franchisee accepts, upon the terms and conditions contained in this Agreement, the license to operate a Baya Bar acai shop franchise (the "Franchise" or " the Franchised Business"), using only the Marks licensed hereunder, in strict conformity with the System, which may be changed, improved and further developed by Franchisor from time to time. This grant applies only to a single location within a territory that is designated in Attachment 3 attached hereto and incorporated herein (the "Territory").
3. TERRITORY
- 3.1 Territory. This Agreement grants Franchisee the right to operate the Franchised Business at a single location and from within the Territory. Subject to Section 3.2 below, Franchisor agrees that during the Term of this Agreement, Franchisor will not operate, and will not authorize any other franchisees to operate, a Baya Bar outlet in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not been terminated. Except as otherwise specified in this Agreement, Franchisor reserves the right to open, operate or franchise Baya Bar franchises bordering and adjacent to the Territory.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar grants a franchise to a franchisee based on the terms and conditions outlined in the Franchise Agreement. This agreement licenses the franchisee to operate a Baya Bar acai shop franchise at a single, specific location within a designated territory. The franchisee must strictly adhere to Baya Bar's System, which Baya Bar may modify over time.
Baya Bar will not operate or authorize other franchisees to operate within the franchisee's territory, provided the franchisee is not in default and the agreement has not been terminated. However, Baya Bar retains the right to open or franchise locations bordering the territory. The franchisee is restricted from soliciting customers outside their designated territory.
Furthermore, Baya Bar requires the franchisee to agree to and comply with all terms and provisions of the agreement to get into a Franchise Agreement. This includes adhering to guidelines for internet advertising, social media, and telephone listings linked to the Baya Bar brand. Franchisee must also maintain adequate internet access and utilize the electronic mail account provided by Baya Bar, responding promptly to communications. Franchisees must also get approval from Baya Bar in writing prior to distributing or selling any item that contains Baya Bar's marks.