Can Baya Bar use the Brand Fund for advertising that solicits franchisees?

According to Baya Bar's 2024 Franchise Disclosure Document, while Baya Bar does not intend to use the Brand Fund primarily for advertising to solicit new franchisees, it retains the right to use the Brand Fund for public relations purposes. This includes explaining the franchise system and including a notation in advertisements indicating "Franchises Available."

This means that a portion of the Brand Fund, which franchisees contribute to, could be used to attract new franchisees to the Baya Bar system. While the primary goal of the Brand Fund is to promote the Baya Bar brand and support existing franchisees, the franchisor has the flexibility to allocate funds to franchise recruitment-related activities.

For a prospective franchisee, this implies that the Brand Fund contributions may not solely benefit their individual business through direct consumer advertising. Instead, some of the funds could be used to expand the franchise network, which Baya Bar believes will benefit the system as a whole. Franchisees should consider this when evaluating the costs and benefits associated with the Brand Fund contributions.