Does the Azal Coffee franchise agreement include a reference to 'Franchisor'?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
training and/or employment.
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- I understand that the Company is an independently owned and operated Azal Coffee franchisee and is my sole employer and solely responsible for the terms and conditions of my employment and my compensation. I further understand that the Franchisor is not directly or indirectly my employer and that the Franchisor is granted rights under this Agreement solely for the purpose of protecting the Azal Coffee Confidential Information and the Azal Coffee systems and brand.
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- My obligations under this Agreement will be binding on me and my heirs and personal representatives and will inure to the benefit of the Company and the Franchisor and their successors and assigns. My obligations arising out of this Agreement are in addition to and are not in any manner limitations on all obligations not to use or disclose the Company's or the Franchisor's Confidential Information as provided by law, whether expressly or by implication.
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- I acknowledge that my breach of this Agreement will cause the Company and/or Franchisor irreparable harm.
Source: Item 23 — RECEIPTS (FDD pages 51–204)
What This Means (2024 FDD)
Yes, according to the 2024 Azal Coffee Franchise Disclosure Document, the term 'Franchisor' is referenced within the franchise agreement, particularly in Item 23 which pertains to receipts. The document specifies the rights, obligations, and protections afforded to Azal Coffee, the franchisor, in various contexts, including those related to confidential information, trade secrets, and enforcement of the franchise agreement.
Specifically, the FDD outlines that the franchisor is not considered the employer of the franchisee's employees but is granted rights to protect the Azal Coffee brand and confidential information. Furthermore, the agreement stipulates that any breach of confidentiality can cause irreparable harm to both the company (franchisee) and the franchisor, entitling them to injunctive relief and recovery of costs, including attorney's fees. The franchisor is also identified as a third-party beneficiary of the agreement, allowing them to independently enforce its provisions.
In addition, certain states like Virginia and Illinois have specific stipulations regarding the enforceability of certain clauses within the franchise agreement. For example, in Virginia, franchisors are prohibited from using undue influence to induce franchisees to surrender their rights, and franchisees cannot disclaim reliance on the franchisor regarding fraud in the inducement. Similarly, in Illinois, any provision that waives compliance with the Illinois Franchise Disclosure Act or disclaims reliance on behalf of the franchisor is void. These state-specific regulations aim to protect franchisees from potentially overreaching terms in the franchise agreement.