How does Azal Coffee define 'Family Members' in the context of the franchise agreement?

According to Azal Coffee's 2024 Franchise Disclosure Document, the term 'Family Members' is specifically defined within the context of the franchise agreement. This definition is important because certain restrictions and obligations apply not only to the franchisee but also to their family members.

Azal Coffee defines 'Family Members' as individuals with specific relationships to the franchisee or any of their shareholders, officers, directors, partners, managers, members, owners, investors, and affiliates. These relationships include: spouse, children, grandchildren, stepchildren, parents, siblings, spouse's parents, and spouse's siblings. This broad definition ensures that individuals closely related to the franchisee are also subject to certain restrictions, particularly those related to competition with Azal Coffee, both during the term of the agreement and for a period after its termination.

This definition has significant implications for a prospective Azal Coffee franchisee. It means that the franchisee's close family members are also restricted from engaging in any competing business activities that could harm Azal Coffee. This restriction extends for three years after the termination, expiration, or non-renewal of the franchise agreement. Therefore, a potential franchisee needs to consider how these restrictions might affect their family members' business endeavors or employment opportunities. It is important to discuss these implications with family members before entering into a franchise agreement with Azal Coffee.