What are the consequences if I fail to participate in Azal Coffee's specified gift card programs?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You must participate in all gift cards, electronic gift or money cards (E-cards), frequency cards, awards or loyalty programs, or other programs specified by us and you must honor all cards, awards, and other programs issued by us or by other franchisees in accordance with our policies. You acknowledge and agree that your participation in those programs is integral to the Franchise Systems and to the success of those programs. We or a person designated by us will administer all gift and E-card or other programs specified by us. We retain the right to retain and use for our benefit any breakage from gift cards. We may charge an administrative fee for administrating those programs. We will have the right to charge you liquidated damages under Section 15.7 for each week that you fail to participate in any of these programs specified by us.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, participation in gift card and loyalty programs is mandatory. Azal Coffee requires franchisees to participate in all gift cards, electronic gift or money cards (E-cards), frequency cards, awards or loyalty programs, or other programs that they specify. Franchisees must honor all cards, awards, and other programs issued by Azal Coffee or by other franchisees, in accordance with Azal Coffee's policies.
Azal Coffee emphasizes that participation in these programs is crucial to the overall success of the franchise system. They, or a designated person, will administer these programs and retain the right to use any breakage from gift cards for their benefit. They may also charge an administrative fee for managing these programs.
If a franchisee fails to participate in the specified programs, Azal Coffee has the right to charge liquidated damages under Section 15.7 for each week of non-compliance. This underscores the importance Azal Coffee places on system-wide participation in these programs for maintaining uniformity and customer loyalty across all franchise locations.