In the context of the Azal Coffee franchise agreement addendum, who do the terms 'we,' 'us,' and 'our' refer to?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
The following is in addition to the disclosure in Item 8 of the Franchise Disclosure Document:
The requirement for you to purchase products from us or some other entity as we designate in writing, may be unlawful under Indiana Law. Under the Franchise Agreement amended for use in Indiana, if, and to the extent, that requirement is found to be unlawful, that requirement will be void (to the extent unlawful) and you must purchase those products from approved suppliers.
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- The following is in addition to the disclosure in Item 12 of the Franchise Disclosure Document:
- (a) Under the Franchise Agreement amended for use in Indiana, we are prohibited from establishing a Franchisor owned outlet engaged in a substantially identical business to that of the Franchise Business within your Protected Area, whether or not the business is operated under the Franchise Marks.
Source: Item 23 — RECEIPTS (FDD pages 51–204)
What This Means (2024 FDD)
Based on the 2024 Azal Coffee Franchise Disclosure Document, the terms 'we,' 'us,' and 'our' are used within the context of the Indiana addendum to the franchise agreement. Specifically, they refer to Azal Coffee, the franchisor, in relation to the franchisee. This is evident in the clauses that address purchasing requirements and the establishment of franchisor-owned outlets.
The Indiana addendum modifies certain aspects of the standard franchise agreement to comply with Indiana law. For example, the requirement for a franchisee to purchase products from Azal Coffee or its designated suppliers may be deemed unlawful under Indiana law. In such cases, the franchisee would be required to purchase products from approved suppliers instead. Similarly, Azal Coffee is restricted from opening a company-owned store that is substantially identical to the franchisee's business within the franchisee's protected area.
These stipulations are important for prospective Azal Coffee franchisees in Indiana as they clarify the extent to which the standard franchise agreement is altered by state-specific regulations. Franchisees should pay close attention to these addenda to understand their rights and obligations, particularly regarding sourcing products and the exclusivity of their protected area. The Indiana addendum also specifies that while the agreement is generally governed by Michigan law, Indiana franchise law takes precedence where applicable.