Upon what is the authorization to open a Baya Bar franchise conditioned?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Except as set forth in this Agreement, Franchisee is prohibited from serving and soliciting customers outside of the Territory and from alternative methods of distribution as more fully specified herein.
- 3.2 Reservation of Rights.
Franchisee understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the grant of a franchise is subject to the terms and conditions outlined in the franchise agreement. Specifically, the franchisee is granted a license to operate a Baya Bar acai shop franchise, using only the marks licensed under the agreement, and in strict conformity with the Baya Bar system. This system can be changed, improved, and further developed by Baya Bar from time to time.
This authorization applies only to a single location within a designated territory, as specified in an attachment to the franchise agreement. The franchisee has the right to operate the franchised business at a single location within that territory. Baya Bar agrees not to operate or authorize other franchisees to operate a Baya Bar outlet in the territory using the same marks, as long as the franchisee is not in default under the agreement and the agreement has not been terminated.
Baya Bar, however, reserves the right to open, operate, or franchise Baya Bar franchises bordering and adjacent to the territory, unless otherwise specified in the agreement. The franchisee is prohibited from serving and soliciting customers outside of the territory and from using alternative methods of distribution, except as detailed in the agreement. All rights to businesses not explicitly granted in the agreement are reserved to Baya Bar, both within and outside the franchisee's territory.