Does Azal Coffee's approval of a supplier constitute a blanket approval for all items the supplier may sell?

According to Azal Coffee's 2024 Franchise Disclosure Document, approval of a supplier does not constitute blanket approval for all items that supplier may sell. Azal Coffee's approval is only for specific items sold by that supplier as approved by Azal Coffee.

Azal Coffee requires franchisees to purchase products and services used in the development and operation of their franchise business according to Azal Coffee's specifications and only from manufacturers, suppliers, or distributors designated or approved by them. Certain products and services are designated as "Designated Products or Services" and must be purchased from Azal Coffee or a designated supplier. These include items such as coffee beans, tea, mixes, equipment, paper products, syrups, sauces, milk, cups, mugs, branded products, coffee supplies, bakery goods, uniforms, and POS system hardware and software.

For items other than Designated Products or Services, franchisees must obtain them from a supplier approved by Azal Coffee, meeting their standards for quality, uniformity, and other relevant criteria. Franchisees can request approval of alternative suppliers by submitting necessary information and samples. Azal Coffee may require suppliers to adhere to their procedures, specifications, and standards, allow quality control inspections, provide samples, maintain confidentiality, and pay a license fee for using their intellectual property.

This policy ensures that Azal Coffee maintains control over the quality and consistency of products used in its franchise system. It also allows Azal Coffee to manage its brand standards and protect its intellectual property. Franchisees should be aware that they have limited flexibility in sourcing products and must adhere to Azal Coffee's approved suppliers and specifications, which could impact their costs and operational decisions.