In the context of the Azal Coffee franchise agreement addendum, who do the terms 'you' and 'your' refer to?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 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.
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- The following is in addition to the disclosure in Item 17 of the Franchise Disclosure Document:
- (a) Under the Franchise Agreement amended for use in Indiana, the post-termination non-competition covenant only applies to your Protected Area and does not include the areas within a radius of any other Azal Coffee franchise location.
Source: Item 23 — RECEIPTS (FDD pages 51–204)
What This Means (2024 FDD)
According to the 2024 Azal Coffee Franchise Disclosure Document, specifically within the context of the Indiana addendum, the terms "you" and "your" refer to the franchisee. This is evident in the stipulations and modifications made to the standard franchise agreement for use in Indiana.
For instance, the addendum clarifies that the requirement for the franchisee to purchase products from specific or designated entities may be unlawful under Indiana law. If such a requirement is deemed unlawful, it becomes void, and the franchisee, referred to as "you", must then purchase products from approved suppliers. This modification ensures compliance with Indiana state laws and protects the franchisee from potentially unlawful obligations.
Furthermore, the addendum addresses the establishment of franchisor-owned outlets within the franchisee's protected area. It states that Azal Coffee is prohibited from establishing a company-owned outlet engaged in a substantially identical business within "your" (the franchisee's) protected area, regardless of whether the business operates under the franchise marks. This provision reinforces the protection afforded to the franchisee's territory under Indiana law.
Additionally, the post-termination non-competition covenant is limited to "your" (the franchisee's) protected area and does not extend to areas within a radius of any other Azal Coffee franchise location. This clarification provides further assurance to the franchisee regarding the scope and limitations of the non-competition agreement under Indiana law.