Who benefits from the Azal Coffee Guaranty?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
20.6 Our Reasonable Business Judgment.
Whenever we have the right in this Agreement to take or to withhold an action, or to grant or decline to grant you a right to take or omit an action, we may, except as otherwise specifically provided in this Agreement, make our decision or exercise our rights based on information readily available to us and our judgment of what is in our and/or the Azal Coffee franchise system's best interests at the time our decision is made, without regard to either whether we could have made other reasonable or even arguably preferable alternative decisions or whether our decision promotes our financial or other individual interest. Examples of items that will promote or benefit the Azal Coffee franchise system include enhancing the value of the Intellectual Property, improving customer service and satisfaction, improving product quality, improving uniformity, enhancing or encouraging modernization, and improving the competitive position of the Azal Coffee franchise system.
20.7 Third Parties.
Except as provided in this Agreement to the contrary for any of our affiliates or franchisees, nothing in this Agreement, whether expressed or implied, is intended to confer any rights under this Agreement on any person (including other Azal Coffee franchisees) other than the parties and their respective personal representatives, other legal representatives, heirs, successors, and permitted assigns.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
Based on the 2024 Azal Coffee Franchise Disclosure Document, the franchise agreement is designed to primarily benefit Azal Coffee and its franchise system. While franchisees are expected to adhere to the agreement's terms, including maintaining standards and complying with regulations, the agreement explicitly states that it is structured to promote the best interests of the franchisor and the overall Azal Coffee network.
According to section 20.7, unless explicitly stated otherwise within the franchise agreement for affiliates or franchisees, the agreement does not intend to confer rights to any third party. This includes other Azal Coffee franchisees, meaning that the agreement's benefits are largely reserved for the parties directly involved: the franchisor and the specific franchisee signing the agreement. This clause clarifies that the agreement is not designed to create enforceable rights or benefits for individuals or entities outside of this direct relationship.
Azal Coffee retains the right to make decisions based on its judgment of what best serves the franchise system, as indicated in section 20.6. This includes actions that enhance the value of intellectual property, improve customer service, product quality, uniformity, modernization, and the competitive position of the Azal Coffee franchise system. While these actions may indirectly benefit franchisees, the primary intent is to strengthen the overall brand and system, with the franchisor having the discretion to prioritize these interests.