factual

Does the Azal Coffee franchise agreement grant franchisees any ownership rights to the Intellectual Property?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

If this Agreement expires or terminates for any reason (including termination on a transfer), your rights to use the Intellectual Property and the Franchise Systems and all other rights associated with being an authorized Azal Coffee franchisee will cease and you must do the following:

  • (a) You must immediately and permanently discontinue the use of the Intellectual Property, the Confidential Information, the Franchise Systems, and any trademarks, names, and logos confusingly similar to the Marks or Trade Dress, and any other materials that may, in any way, indicate that you are or were an Azal Coffee franchisee, or in any way associated with us.
  • (b) You must immediately discontinue all advertising placed or ordered. You must remove and deliver to us all sign faces, advertising and promotional material, letterhead, forms, and any other items containing the Intellectual Property or the Confidential Information. You are responsible for the cost of sign and other identification removal and the cost of shipping signs and other materials to us. If you remain in possession of the Franchise Location, you must alter the premises to distinguish the premises from the appearance of a Store.
  • (c) You must cease using the Brand Standards Manual, the Confidential Information, and all other proprietary business information provided by us and must return to us all copies of the Brand Standards Manual, the Confidential Information, and other bulletins or other materials received from us containing information about the Intellectual Property and Stores.
  • (d) You must immediately and permanently cease to use all telephone and fax numbers, email addresses, website addresses, domain names and other electronic media that have been used in the Franchise Business (the "Telephone Numbers" and "Electronic Media") and if requested by us, must assign some or all of these Telephone Numbers and Electronic Media to us. You acknowledge that as between you and us, we have the sole right to all Telephone Numbers and Electronic Media used in the Franchise Business and all written and online directory listings associated with the Franchise Business. You authorize us, and appoint us and any of our officers as your attorney-in-fact, to direct the applicable service providers and all listing agencies to transfer those items to us or our agent or assignee if you fail or refuse to do so. You authorize the applicable service providers and all listing agencies to accept the direction in this Agreement as conclusive evidence of our exclusive rights in the Telephone Numbers and Electronic Media and directory listings and our authority to direct their transfer.

Source: Item 22 — CONTRACTS (FDD page 51)

What This Means (2024 FDD)

According to the 2024 Azal Coffee Franchise Disclosure Document, franchisees do not acquire ownership rights to the company's intellectual property. Instead, franchisees are granted a limited license to use Azal Coffee's intellectual property solely for operating their franchise business, and this use must adhere strictly to the guidelines and standards set by Azal Coffee.

The franchise agreement specifies that upon expiration or termination of the agreement, the franchisee's right to use Azal Coffee’s intellectual property immediately ceases. The franchisee must discontinue all use of the intellectual property, confidential information, and franchise systems. This includes trademarks, names, logos, advertising materials, and any other items associated with the Azal Coffee brand.

Moreover, the franchisee is obligated to transfer control of all telephone numbers and electronic media used in the franchise business to Azal Coffee. This includes assigning telephone numbers, email addresses, website addresses, and social media accounts to the company, ensuring that the franchisee retains no rights to these assets after the termination of the agreement. Azal Coffee retains the sole right to these communication channels and online presences associated with the franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.