Does the Azal Coffee agreement state that I entered into it voluntarily?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
As an employee or trainee of the Company, I acknowledge that in the course of my employment by the Company and my training in the Azal Coffee franchise systems of operation, I will have access to certain Confidential Information, as defined below, about the Company and the Franchisor's methods of establishing, developing, operating and maintaining Azal Coffee Stores that is confidential and not available to the public in general. I understand that the Company and the Franchisor have spent a great deal of time and money developing this Confidential Information and I acknowledge that the Company and the Franchisor's reasonable competitive business interests would be severely and irreparably damaged if the Confidential Information that has been (or may be) revealed to me were to be disclosed to any third person, become available to the public in general, or used by me to compete with the Company or the Franchisor or any of its affiliates or franchisees. I, therefore, agree that the Company and Franchisor have a need to protect the Company's and the Franchisor's valuable Confidential Information and I agree that in consideration of these factors, and in consideration of my employment or continuing employment with the Company and/or by training in the Azal Coffee systems of operation, I promise and agree to be bound by the terms of this Agreement as follows:
- I agree not to directly or indirectly disclose to any individual, company, partnership, business, corporation or any other entity ("person") or to use myself, any Confidential Information which I learn during my training and/or employment with the Company, except as necessary in the course of my employment with the Company. I agree that these restrictions will apply while I am in training or am employed by the Company and indefinitely after my training is completed or ends or my employment terminates or ends for any reason.
I agree to, at all times, keep the Confidential Information strictly confidential and to maintain the secrecy of the Confidential Information. In particular, I will, at all times, keep all tangible forms of the Confidential Information that I have been entrusted with in a secure work area and safely locked away when not in use and will ensure that these items do not fall into the hands of unauthorized persons.
Source: Item 23 — RECEIPTS (FDD pages 51–204)
What This Means (2024 FDD)
Based on the 2024 Azal Coffee Franchise Disclosure Document, several clauses within Item 23 Receipts imply acknowledgement and agreement to the terms, but there is no explicit statement confirming that the agreement was entered into voluntarily. Instead, the document focuses on the franchisee's acknowledgement of the franchisor's rights and the franchisee's obligations, particularly regarding confidential information and non-compete clauses.
Specifically, the franchisee acknowledges that they will have access to confidential information and agrees to protect it, understanding that the franchisor's business interests would be irreparably damaged if this information were disclosed. The franchisee also agrees to be bound by non-compete terms, which restrict their ability to engage in competing businesses within a certain radius of an Azal Coffee store for a specified period. These agreements are made in consideration of employment or training with the company.
Additionally, the franchisee acknowledges that breaching the agreement will cause irreparable harm to Azal Coffee and agrees that the company is entitled to injunctive relief in the event of a breach. The franchisee also agrees that the restrictions, rights, and remedies contained in the agreement are reasonable, valid, and enforceable. While these acknowledgements suggest a level of understanding and agreement, they do not explicitly state that the franchisee is entering into the agreement voluntarily.
Prospective franchisees should carefully review all terms and conditions of the franchise agreement with legal counsel to ensure they fully understand their obligations and rights before signing. It would be prudent to ask Azal Coffee directly whether a specific clause confirming voluntary agreement exists elsewhere in the full franchise agreement.