Does Azal Coffee have to disclose any pending administrative, criminal, or civil actions alleging fraud, embezzlement, fraudulent conversion, or misappropriation of property?
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 the 2024 Azal Coffee Franchise Disclosure Document, Item 23 includes additional information for New York franchisees regarding litigation. Specifically, it states that except for actions disclosed in Item 3 of the FDD, neither the franchisor, its predecessors, certain affiliates, nor any person identified in Item 2 has had any litigation.
This statement means that Azal Coffee is required to disclose any relevant litigation in Item 3. Item 23 serves as a reminder and additional confirmation for prospective franchisees in New York that, beyond what is already disclosed in Item 3, no other relevant parties have a history of such legal issues.
For a prospective Azal Coffee franchisee, this is a crucial point to verify. They should carefully review Item 3 to understand any disclosed litigation and confirm with Azal Coffee that the statement in Item 23 is accurate and that there are no other pending or prior actions that could affect their investment or the brand's reputation.