factual

Can Baya Bar use the Brand Fund for public relations to explain the franchise system?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

While Franchisor does not intend that any part of the Brand Fund will be used for advertising which is principally a solicitation for franchisees, Franchisor reserves the right to use the Brand Fund for public relations, to explain the franchise system, and/or to include a notation in any advertisement indicating "Franchises Available."

Source: Item 22 — CONTRACTS (FDD page 56)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar has the right to utilize the Brand Fund for public relations purposes, including explaining the franchise system. While Baya Bar does not intend to use the Brand Fund primarily to solicit new franchisees, it retains the right to use it for public relations to explain the franchise system and include a notation in any advertisement indicating "Franchises Available."

Baya Bar directs all brand advertising and marketing programs and has the sole discretion to approve the creative concepts, materials, and media used in such programs, as well as their placement and allocation. The Brand Fund is intended to maximize general public recognition and acceptance of the Baya Bar marks and enhance the collective success of all franchised businesses operating under the system.

The Brand Fund operates solely as a conduit for collecting and expending advertising contributions for the Baya Bar system. It will not be used to defray Baya Bar's general operating expenses, except for reasonable administrative costs and overhead related to the administration and direction of the Brand Fund, as well as costs and expenses pursuant to Section 13.3.4. The Brand Fund and its earnings shall not otherwise benefit Baya Bar.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.