Upon termination of the Baya Bar Franchise Agreement, what must the franchisee immediately direct all telephone companies to do with the franchisee's telephone listings?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee must immediately direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which the franchisee has Telephone Listings to transfer all of the franchisee's interest in such Telephone Listings to Baya Bar. The franchisee must also execute documents and take actions necessary to effectuate the transfer.
However, if Baya Bar does not want to accept any or all of the telephone listings, the franchisee must immediately direct the Telephone Companies to terminate such Telephone Listings or take other actions with respect to the Telephone Listings as Baya Bar directs. This ensures that Baya Bar maintains control over its brand and presence in the market, even after a franchise agreement ends.
This requirement is fairly standard in franchising. It protects Baya Bar's brand identity and prevents a former franchisee from potentially misusing telephone listings to confuse customers or unfairly compete with the Baya Bar system. A prospective franchisee should understand that upon termination, they will lose control over any telephone listings associated with the Baya Bar business and must cooperate with Baya Bar to transfer or terminate those listings.