Which article relating to obligations on termination survives the termination of the Azal Coffee Franchise Agreement?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| THIS ADDENDUM is made the day of, 20, and modifies a |
|---|
| Franchise Agreement of the same date (the "Franchise Agreement") entered into by Durar Investment, LLC, a Michigan limited liability company, ("Franchisor") and |
| , a(" Franchisee "). In this |
| , a |
| A. Introduction . You entered into an agreement ("Purchase Agreement") for the |
| purchase of the Azal Coffee located at ("Store") from the current owner of the Store (the "Seller"). We and you |
| desire to amend the Franchise Agreement to reflect the fact that you are acquiring an open and |
| operating Store by transfer from one of our existing franchisees. All capitalized terms not otherwise |
| defined in this Addendum will have the same meaning as in the Franchise Agreement. |
| B. Contingency ; Date of Effectiveness of Franchise Agreement . The rights and |
| obligations of the parties under the Franchise Agreement are contingent on: (1) your completion of |
| our initial training program; and (2) the closing of the transaction under the Purchase Agreement and the transfer of possession and ownership of the Store to you. If these contingencies are not |
| met by, 20, we may, at our option, terminate the Franchise Agreement. If |
| we terminate the Franchise Agreement as provided in this Section, we will have the right to retain |
| the transfer |
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, in the addendum modifying the Franchise Agreement, the confidentiality and non-competition provisions survive the termination of the agreement.
This means that even after the Franchise Agreement ends, the franchisee is still obligated to maintain the confidentiality of Azal Coffee's proprietary information and adhere to the non-competition terms. These provisions are designed to protect Azal Coffee's business interests and prevent former franchisees from using confidential information or competing unfairly with the brand.
For a prospective Azal Coffee franchisee, this implies a long-term commitment to protecting the brand's interests, even after the franchise relationship concludes. It is important to carefully review and understand the specific terms of the confidentiality and non-competition provisions to fully grasp the extent of these obligations.