factual

What are the conditions that Azal Coffee franchisees must comply with before opening their Franchise Business to the public?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

provided in Section 4.13 of this Agreement.

8.13 Compliance with Laws and Other Obligations; Taxes.

You must obtain and keep in force every registration, charter, license, and permit required for the Franchise Business. In addition to all other references in this Agreement, you shall comply with all requirements of federal, state and local laws, rules, regulations, and orders related to the operation of your Store, including but not limited to obtaining the appropriate licenses and permits required by your local or state government and are required to operate the Store in compliance with the requirements of all federal, state, and local laws, rules, regulations, or ordinances that govern food preparation and service and Store sanitary conditions, the federal Clean Air Act and various implementing state laws require certain state and local areas to meet national air quality standards limiting emissions of ozone, carbon monoxide and particulate matters, including caps on emissions from commercial food preparation, all federal, state, and local laws, rules, regulations, and ordinances that govern your employment relationship with your employees, and other laws, rules and regulations that apply to business generally, such as the Americans With Disabilities Act, Fair Labor Standards Act, Family and Medical Leave Act, Affordable Care Act, Federal Wage and Hour Laws, Title VII of the Civil Rights Act, Age Discrimination in Employment Act, Affordable Care Act., Employee Retirement Income Security Act, and the Occupational Safety and Health Act, also apply to Stores, and comparable laws regulating minimum wage, overtime pay, recordkeeping, youth employment standards, and other aspects of employment), environmental regulation, and taxation.

You must pay, when due, all taxes of every kind applicable to the Franchise Business or the income of the Franchise Business, including all local, state, and federal taxes. We will not be responsible for any sales, use, service, occupation, excise, gross receipts, income, property, or other taxes, whether levied on you or the Franchise Business, due to the business you conduct (except for our income taxes). You are responsible for paying these taxes and must reimburse us for any taxes that we pay to any federal, state, or local taxing authority on account of your operations or payments that you make to us.

We may, but have no obligation to, advise you on legislative or other legal developments that may affect the Franchise Business. Any information we provide to you does not relieve you of your responsibility to consult with your own legal advisors regarding laws applicable to the Franchise Business. You acknowledge that you are solely responsible for complying with all laws applicable to the Franchise Business.

8.14 Separate Identification of Franchise Business.

You must identify the Franchise Business as a separate business by filing an assumed name certificate as appropriate in the state and/or county of location of the Franchise Business. You must conspicuously post at the Franchise Location a notice to the effect that the Franchise Business is independently owned and operated by you and not by us. You must conspicuously identify yourself in all dealings with customers, suppliers, public officials, your employees, and others as the owner of the Franchise Business under a franchise granted by us and to place notice of independent ownership on the forms, business cards, stationery, advertising, and other materials specified by us.

8.15 Participation in Franchisee Advisory and other Committees.

We may establish committees of franchisees to advise us on various matters involving the Franchise Systems. You will be eligible to participate on those committees, in accordance with the rules established by us and each committee, but only if you are a franchisee-in-good-standing at that time and have been a franchisee-in-good-standing for the six (6) month period before serving

on the committee. In order to be a franchisee-in-good-standing, you must be: (a) current in all obligations to us and our affiliates; and (b) operating in accordance with all the requirements of the Franchise Systems, including requirements relating to quality, cleanliness, and service.

8.16 Costs to Respond to Special Requests.

We may charge you and you agree to pay us for any expenses incurred by us in responding to special requests from you and preparing any documentation necessary based on those requests. These expenses include but are not limited to, out-of-pocket expenses and attorneys' fees. Examples of special requests from you that could cause these expenses include, but are not limited to, requests for approval of minority transfers or transfers to controlled entities, corrections or amendments to this Agreement or other agreements, modifications of standards or standard procedures, and extensions of time to perform obligations.

ARTICLE 9 – ADVERTISING

9.1 Grand Opening Advertising.

Source: Item 22 — CONTRACTS (FDD page 51)

What This Means (2024 FDD)

According to the 2024 Azal Coffee Franchise Disclosure Document, franchisees must meet several conditions related to legal compliance, operational technology, and advertising standards before opening their franchise business.

Franchisees are responsible for obtaining and maintaining all necessary registrations, charters, licenses, and permits required to legally operate the Azal Coffee franchise. This includes adhering to federal, state, and local laws, rules, regulations, and orders related to store operation. Compliance extends to food preparation and service, sanitary conditions, and environmental regulations, including the Clean Air Act. Franchisees must also comply with laws governing employment relationships, such as the Americans With Disabilities Act, Fair Labor Standards Act, and the Affordable Care Act.

Azal Coffee franchisees must also use specific technologies in connection with their franchise. This includes websites, point of sale systems, customer management systems, and other electronic media as specified by Azal Coffee. Franchisees are obligated to acquire and use this Franchise Technology in the manner that Azal Coffee specifies, and their access to and use of the technology is subject to compliance with the terms and conditions of use and other policies and procedures.

Before opening, all advertising by the franchisee, including signage, must be factual, dignified, and conform to Azal Coffee's standards and specifications. Franchisees must submit all marketing and promotion materials, including signage, to Azal Coffee for written approval at least 30 days before use. Azal Coffee retains the right to disapprove any advertising materials at any time, and franchisees must immediately discontinue the use of disapproved materials. Franchisees must also include specific notices in their advertising, such as Azal Coffee's website domain name, toll-free telephone number, and a statement regarding the availability of Azal Coffee franchises, as well as the phrase "Each Azal Coffee is independently owned and operated."

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.