Can Azal Coffee change or improve the 'Systems' used in its franchises?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
hisee Parties, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby agree as follows:
1) Franchise System
- a) The Company franchises a system for operation of a coffee café that specializes in Yemeni-grown coffee and that sells coffee based beverages, cold drinks, teas, coffee beans, coffee accessories, pastries, baked goods, and other related items, all of which are proprietary and are identified by the public with Azal Coffee products; prescribed exterior and interior design, decor, seating, fixtures, and furnishings; standards and specifications for products and supplies; service standards; uniform standards, specifications, and procedures for operations; training and assistance; and advertising and promotional programs (collectively "Systems"); all of which may be changed, improved, and further developed by the Company.
- b) A business operated under the Systems, the Company's trademarks, and the Company's trade dress, whether operated by the Company or its affiliates or other persons authorized by the Company, will be referred to in this Agreement as a "Store." The Store that Franchisee is licensed to operate under the Franchise Agreement will be referred to in this Agreement as the "Franchise Business."
2) Definitions.
- a) The term "Brand Standards Manual" shall mean all manuals or other written materials relating to the Systems or containing the Company's specifications.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee has the right to change, improve, and further develop the 'Systems' used in its franchises. The 'Systems' encompass various aspects of the Azal Coffee business model, including the specialized Yemeni-grown coffee, coffee-based beverages, cold drinks, teas, coffee beans, coffee accessories, pastries, baked goods, store design, product standards, service standards, operational procedures, training, and advertising programs. This means Azal Coffee retains control over the evolution of its brand and operational standards.
Azal Coffee may also require franchisees to adopt certain technologies, referred to as 'Franchise Technology,' which includes websites, point of sale systems, customer management systems, and other electronic media. Azal Coffee can modify this technology in the future, and franchisees are obligated to implement these changes within 30 days of receiving written notice. Franchisees are responsible for all costs associated with these technology upgrades, including license fees, service fees, and maintenance costs.
Azal Coffee also has the right to make decisions based on its reasonable business judgment, which includes enhancing the value of its intellectual property, improving customer service, product quality, uniformity, modernization, and the competitive position of the Azal Coffee franchise system. This allows Azal Coffee to adapt to market changes and maintain brand standards across all franchise locations. For a prospective franchisee, this means they must be prepared to adapt to changes implemented by Azal Coffee, including adopting new technologies and adhering to updated brand standards and operational procedures.