Upon termination of the Baya Bar Franchise Agreement, what must the franchisee do with their interest in Electronic Advertising?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 Transfer.
On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
- 2.3.1 direct all internet service providers, domain name registries, internet search engines, social media companies, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Electronic Advertising: (i) to transfer all of Franchisee's interest in such Electronic Advertising 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 Electronic Advertising, Franchisee will immediately direct the Internet Companies to terminate such Electronic Advertising or will take such other actions with respect to the Electronic Advertising as Franchisor directs; and
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, upon termination of the Franchise Agreement, a franchisee must take specific actions regarding their interest in Electronic Advertising. Electronic Advertising includes domain names, social media accounts, website content, and hyperlinks related to the Baya Bar business. The franchisee is obligated to direct all Internet Companies (internet service providers, domain name registries, search engines, social media companies, and listing agencies) to transfer all rights and interests in the Electronic Advertising to Baya Bar.
If Baya Bar does not want to accept the Electronic Advertising, the franchisee must direct the Internet Companies to terminate the Electronic Advertising or take other actions as directed by Baya Bar. To facilitate these actions, the franchisee grants Baya Bar a power of attorney, allowing Baya Bar to act on the franchisee's behalf to manage the transfer or termination of the Electronic Advertising. Baya Bar can use a written statement as proof of termination to the Internet Companies.
Once the transfer of interests is complete, the franchisee has no further interest in or obligations related to the Electronic Advertising, although they remain responsible for any outstanding payments owed to the Internet Companies for obligations incurred before the transfer. This ensures that Baya Bar maintains control over its brand and online presence, while the franchisee is released from further obligations related to the Electronic Advertising after fulfilling the transfer requirements.