Does Azal Coffee have to disclose any pending administrative, criminal, or civil actions alleging a felony?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- Litigation. The following is in addition to the disclosure in Item 3 of the Franchise Disclosure Document:
Except for any actions disclosed in the body of the Disclosure document, neither the franchisor, a predecessor, a parent or affiliate that induces franchise sales by promising to back the franchisor financially or otherwise guarantees the franchisor's performance, an affiliate who offers franchises under the Franchisor's principal trademarks, nor any person identified in Item 2 of the Franchise Disclosure Document:
Source: Item 23 — RECEIPTS (FDD pages 51–204)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Item 23 includes additional information regarding litigation in the state of New York. Specifically, it states that, except for actions disclosed elsewhere in the document, neither Azal Coffee, its predecessors, certain affiliates, nor any person identified in Item 2 has pending actions.
This disclosure requirement is specific to franchise registration in New York. The statement clarifies that the New York State registration of the franchise does not imply endorsement or verification of the information in the document. It also provides contact information for the Federal Trade Commission and the New York State Department of Law if any information in the disclosure document is found to be untrue.
This information is crucial for prospective franchisees in New York as it highlights their right to additional legal protections and avenues for recourse if they encounter discrepancies or misrepresentations in the FDD. It also emphasizes that while negotiation is possible, Azal Coffee cannot pressure franchisees into accepting less favorable terms than those already outlined in the FDD.