What does the Azal Coffee franchise agreement say about measuring damages for breaches of confidentiality and non-competition?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
e liquidated damages in the manner specified in Section 4.13 within ten (10) days of our written notice to you.
15.8 Other Remedies.
Our exercise of any remedy as described in this Article 15 or elsewhere in this Agreement and/or enforcement of the provisions of Article 16 on termination or expiration of this Agreement will not affect or prejudice any other rights or remedies we may have for breach of this Agreement by you, whether those rights and remedies are contained in this Agreement or otherwise provided by law or equity. Our other rights and remedies may include an action for specific enforcement of this
Agreement or other injunctive relief, an action for damages caused by the breach, or termination of this Agreement.
15.9 Security.
Until all payments are made and any damages, costs, and expenses incurred or suffered by us have been paid, we shall have, and you shall be deemed to have granted, a lien against any and all of the furnishings, fixtures, and equipment, and all other assets of the Franchise Business, and your interest in the Lease and the Location.
ARTICLE 16 - EFFECT OF TERMINATION OR EXPIRATION
16.1 Your Obligations on Expiration or Termination.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to the 2024 Azal Coffee Franchise Disclosure Document, if a franchisee breaches the agreement, Azal Coffee has various remedies available. These include seeking specific enforcement or injunctive relief, which means Azal Coffee can ask a court to order the franchisee to comply with the agreement or to stop certain actions. Azal Coffee can also pursue an action for damages to recover losses caused by the breach, or even terminate the franchise agreement.
Azal Coffee retains all rights and remedies for breaches, whether specified in the agreement or available under law or equity. This means that the remedies listed in the franchise agreement are not the only options Azal Coffee has if a franchisee violates the agreement. The franchisor can pursue any other legal or equitable remedies available.
Furthermore, until all payments are made and any damages, costs, and expenses incurred by Azal Coffee are paid, the franchisor has a lien against the furnishings, fixtures, equipment, and all other assets of the franchise business, as well as the franchisee's interest in the lease and location. This provides Azal Coffee with a security interest in the franchisee's assets to ensure payment of any amounts owed. If any restriction related to non-competition is deemed unenforceable, the franchisee agrees to a reduction of the restriction to the extent permissible by law.