What is the consequence if an Azal Coffee franchisee attempts to terminate the Franchise Agreement without complying with the specified provisions?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
If this Agreement expires or terminates for any reason (including termination on a transfer), your rights to use the Intellectual Property and the Franchise Systems and all other rights associated with being an authorized Azal Coffee franchisee will cease and you must do the following:
Our exercise of any remedy as described in this Article 15 or elsewhere in this Agreement and/or enforcement of the provisions of Article 16 on termination or expiration of this Agreement will not affect or prejudice any other rights or remedies we may have for breach of this Agreement by you, whether those rights and remedies are contained in this Agreement or otherwise provided by law or equity. Our other rights and remedies may include an action for specific enforcement of this
Until all payments are made and any damages, costs, and expenses incurred or suffered by us have been paid, we shall have, and you shall be deemed to have granted, a lien against any and all of the furnishings, fixtures, and equipment, and all other assets of the Franchise Business, and your interest in the Lease and the Location.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, if the Franchise Agreement expires or terminates for any reason, including termination on a transfer, the franchisee's rights to use the Intellectual Property and the Franchise Systems, along with all other rights associated with being an authorized Azal Coffee franchisee, will cease.
Specifically, the franchisee must discontinue using Azal Coffee's Intellectual Property and Franchise Systems. This means they can no longer operate under the Azal Coffee brand or utilize its established business model. This obligation remains in effect regardless of the reason for termination, including a transfer of ownership.
Additionally, Azal Coffee retains other rights and remedies for breach of the Franchise Agreement, including actions for specific enforcement, injunctive relief, damages, or termination. Azal Coffee also holds a lien against the furnishings, fixtures, equipment, and other assets of the Franchise Business, as well as the franchisee's interest in the Lease and Location, until all payments, damages, costs, and expenses are settled.