In the Azal Coffee franchise agreement, what does the term 'you' and 'your' refer to?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
A business operated under the Franchise Systems, Franchise Marks, and Franchise Trade Dress, whether operated by us or our affiliates or other persons authorized by us, will be referred to in this Agreement as a "Store." The Store that you are licensed to operate under this Agreement will be referred to in this Agreement as the "Franchise Business."
13.4 Definitions of Competing Business, Geographic Areas, and Family Members. The following definitions will apply to this Agreement:
- (b) "Geographic Areas" means: (i) the Franchise Location; (ii) the area within twenty-five (25) miles of the Franchise Location; and (iii) the areas within twenty-five (25) miles of any other Azal Coffee Store existing or in development at the time you cease to operate the Competing Business.
3.2 Option.
You will have the option to remain an Azal Coffee franchisee for two (2) additional periods of five (5) years if, at the beginning of the option period, all of the following conditions are fulfilled:
- (a) You are not in default under this Agreement or any other agreement with us or our affiliates and no affiliate of yours is in default under any agreement with us or our affiliates.
- (b) Within the last thirty-six (36) months we have not sent you two (2) or more notices of default of the terms of this Agreement or of any of our specifications, standards, or operating procedures (whether or not the notices related to the same or different violations and whether or not you have remedied those violations).
- (c) You provide written notice of your intent to continue as a franchisee not more than twelve (12) months and not less than six (6) months before the beginning of the option period.
- (d) You are able to maintain possession of the Franchise Location or you have been able to secure and develop, in compliance with our then applicable standards used in the granting of a franchise, suitable alternative premises within your Protected Area for your Store. Any alternative premises must be acceptable to and approved in advance by us.
- (e) You agree to take any action specified by us to make the Franchise Business comply with current appearance, Franchise Trade Dress, equipment, fixture, and signage requirements. You acknowledge that we may not uniformly impose refurbishing obligations on renewal of our franchises based on numerous factors and that we may require you to take steps to refurbish the Franchise Location that we have not required of other franchisees.
- (f) Throughout the term of this Agreement you have satisfied all material reporting requirements and all monetary obligations to us and our affiliates, suppliers, vendors, and creditors (excepting reasonable disputes that you are attempting in good faith to resolve) within the amount of time specified for satisfaction or cure of default with respect to the obligation.
- (g) You have satisfied any current training requirements for new or existing franchisees.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to the 2024 Azal Coffee Franchise Disclosure Document, the terms 'you' and 'your' in the franchise agreement generally refer to the franchisee. This is evident in several contexts within the document. For instance, the agreement discusses the franchise being licensed 'to you,' indicating that 'you' pertains to the individual or entity being granted the franchise to operate an Azal Coffee store.
Specifically, the FDD clarifies that the store 'that you are licensed to operate under this Agreement will be referred to in this Agreement as the 'Franchise Business'.' This definition establishes a direct link between 'you' and the franchisee's rights and responsibilities in operating the Azal Coffee business. Similarly, when discussing post-term competition restrictions, the document refers to 'the time you cease to operate the Competing Business,' further solidifying that 'you' refers to the franchisee and their actions.
Additionally, the document outlines conditions for renewing the franchise agreement, stating, 'You will have the option to remain an Azal Coffee franchisee' if certain criteria are met. These criteria include not being in default, providing written notice of intent to continue, and satisfying training requirements, all of which directly relate to the franchisee's conduct and obligations. Therefore, prospective Azal Coffee franchisees should understand that any clause using 'you' or 'your' directly concerns their duties, rights, and relationship with Azal Coffee under the franchise agreement.