What authority and responsibility must a Designated Owner preserve and exercise regarding the management and operation of the Azal Coffee Franchise Business?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ntributions paid to us under Section 4.3.
9.6 Advertising by You; Approval of Advertising Materials.
We have the right to set advertising policies and procedures that you must follow. These advertising policies and procedures may include required promotions, limiting marketing to a certain area so that you are not directing marketing to another franchisee's area, and limiting the type of marketing that you may use.
All advertising by you in any medium, including signage, must be factual and dignified, must conform to our standards and specifications, and to the highest standards of ethical advertising practice, and must be approved by us in writing before it is used. You must submit to us for approval all marketing and promotion materials, including signage, prepared by you for the Franchise Business and not prepared by or previously approved by us. These materials must be submitted at least thirty (30) days before use. If we do not approve advertising submitted to us in writing within the thirty (30) day period, the advertising shall be deemed disapproved. We have the right to disapprove the use of any advertising materials by you at any time. You must discontinue the use of advertising materials immediately on receipt of our written notice, even if we previously approved the use of advertising materials. You must not use any advertising materials not approved by us. You agree to refrain from any business or advertising that may be injurious to our business, or the goodwill associated with the Franchise Marks and Franchise Systems and other Stores.
If specified by us, all of your advertising must contain notices of: (a) our website domain name or other Digital Marketing specified by us; (b) our toll-free telephone number; and/or (c) a statement regarding the availability of Azal Coffee franchises. To the extent possible, you must include the following language in all advertising: "Each Azal Coffee is independently owned and operated." All materials containing our proprietary Marks must include the designation service mark SM, trademark TM, registered trademark ®, copyright ©, or any other designation we specify.
9.7 Digital Marketing.
You acknowledge that the use of the Internet, email, websites, social networks, wikis, podcasts, online forums, content sharing communities, blogging, other social media accounts or participations (including Facebook, Twitter, LinkedIn, YouTube, TikTok, Pinterest, and Instagram), mobile applications and technology, and other digital media, digital coupons, keyword or adword purchasing programs, search engine optimization, search engine marketing, marketing using other forms of digital media, and toll-free telephone numbers ("Digital Marketing") in connection with the operation, advertising, and marketing of the Franchise Business is subject to the trademark. advertising, marketing, and other requirements of this Agreement and the Brand Standards Manual. You must not use any Digital Marketing in connection with the Franchise Business, except with our written consent and then only in accordance with any policies and procedures specified by us. We have the sole right to control all Digital Marketing used to promote Stores (including the Franchise Business) and/or associated with the Franchise Marks. If we authorize you to use Digital Marketing. we may require you to only use Digital Marketing through central accounts established by us. You must provide us with login, password, administrative password, security codes, and other information necessary for us to access and use (including use for marketing to your customers) any Digital Marketing accounts we authorize you to use. We have the right to control all responses to postings by customers and/or the public on Digital Marketing platforms relating to the Franchise Business.
9.8 Photo and Video Release.
You acknowledge and agree that we may take photos and/or videos in your Store or elsewhere and those photos and videos may include photos and videos of your owners, employees, and customers. If we desire to take photos or videos in your Store, we will provide you with notice one week prior to our arrival. We will not engage in photo or video shoots in your Store more than four (4) times per year. You agree that we may use those photos and videos in advertising, including on our website, social media, on television, in any promotional material, and other Digital Marketing. You hereby give and forever grant to us and our successors, assigns, and licensees, the right to use, publish, and copyright throughout the world in perpetuity any such photos and videos, in whole or part, including alterations, modifications, derivations, and composites of the photos and videos (the "Work"), in advertising and promotion of the Franchise Systems and Store. This right includes, but is not limited to, the right to combine the Work, in whole or in part, with other images, and to alter the Work, by digital means or otherwise, so long as the use is of a lawful purpose. You agree that all Work is our property and will not be returned to you for any reason. You, your owners, your employees and any other individual who appears in any photo or video waives any right to inspect or approve the Work. Additionally, your owners, your employees and any other individual appearing in any photo or video waive any right to royalties or other compensation arising or related to the use of any Work. You and your owners hereby hold us harmless from and against and release and forever discharge us from all claims, demands, and causes of action which you, your owners, your employees, and each of their respective successors, assigns, heirs, representatives, executors, administrators, or any other persons on their or your behalf or may have by reason of this authorization.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE STORE (FDD pages 41–42)
What This Means (2024 FDD)
Based on the 2024 Azal Coffee Franchise Disclosure Document, a Designated Owner has several key responsibilities regarding the management and operation of their franchise. They must ensure the Azal Coffee franchise adheres to the standards and specifications set by the franchisor, particularly in advertising and marketing efforts. This includes submitting all marketing materials for approval at least 30 days before use and discontinuing any disapproved materials immediately upon notice. The Designated Owner must also ensure all advertising contains required notices, such as the Azal Coffee website, toll-free number, or franchise availability statement, and includes the phrase "Each Azal Coffee is independently owned and operated." Furthermore, they must ensure proper use of Azal Coffee’s intellectual property and protect its confidentiality.
The Designated Owner is also responsible for ensuring that the franchise uses the Intellectual Property only in connection with the operation of the Franchise Business pursuant to the Franchise Systems and only in the manner specified in the Franchise Agreement or by Azal Coffee. They must operate the Franchise Business under the Franchise Marks and must not use any other name or mark in connection with the Franchise Business without prior written consent. This extends to preventing the reproduction of any Franchise Marks without prior written consent, especially in advertising, marketing, or online presence. The Designated Owner must also promptly notify Azal Coffee of any claims or suits related to intellectual property infringement and cooperate in the defense of such claims.
Additionally, the Designated Owner must ensure compliance with confidentiality and non-competition agreements, preventing the diversion of business or customers to competing businesses during the franchise term and for three years after termination. They must also prevent the employment of individuals involved in competing businesses or the sharing of confidential information with them. The Designated Owner must also attend additional training, sales programs, and meetings as specified by Azal Coffee, covering all associated expenses. Failure to comply with these requirements may result in liquidated damages or even termination of the Franchise Agreement.