Does the Azal Coffee franchise system include advertising and promotional programs?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, the Company is the Franchisor of Azal Coffee Stores and has the authority to disclose and discuss all information relating to the operations of an Azal Coffee Store;
WHEREAS, Confidential Information and Trade Secrets, which are more particularly described below, will be disclosed to the Franchisee Parties in relation to Franchisee's operation of its Azal Coffee Store franchise; and
WHEREAS, the Franchisee Parties understand the necessity of not disclosing any such information to any other party or using such information to compete against the Company, any affiliate(s) or other franchisee(s) of the Company, or in any business (i) that is a Competing Business (as defined below) or (ii) in which Trade Secrets and other Confidential Information (as defined below) could be used to the disadvantage of Franchisee, or the Company, any affiliate(s) of the Company, or the Company's other franchisees.
NOW, THEREFORE, in order to induce the Company to transmit the aforesaid information to the Franchisee Parties, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby agree as follows:
1) Franchise System
- a) The Company franchises a system for operation of a coffee café that specializes in Yemeni-grown coffee and that sells coffee based beverages, cold drinks, teas, coffee beans, coffee accessories, pastries, baked goods, and other related items, all of which are proprietary and are identified by the public with Azal Coffee products; prescribed exterior and interior design, decor, seating, fixtures, and furnishings; standards and specifications for products and supplies; service standards; uniform standards, specifications, and procedures for operations; training and assistance; and advertising and promotional programs (collectively "Systems"); all of which may be changed, improved, and further developed by the Company.
- b) A business operated under the Systems, the Company's trademarks, and the Company's trade dress, whether operated by the Company or its affiliates or other persons authorized by the Company, will be referred to in this Agreement as a "Store." The Store that Franchisee is licensed to operate under the Franchise Agreement will be referred to in this Agreement as the "Franchise Business."
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the franchise system includes advertising and promotional programs. The document states that Azal Coffee has the right to set advertising policies and procedures that franchisees must follow. These policies may include required promotions and limitations on marketing areas and types.
Franchisees are required to obtain written approval from Azal Coffee for all advertising materials, including signage, before use. Franchisees must submit these materials at least thirty days before use, and disapproval is assumed if no response is received within this period. Azal Coffee retains the right to disapprove any advertising materials at any time, and franchisees must immediately stop using disapproved materials. Franchisees are prohibited from using unapproved advertising materials or engaging in any business or advertising that could harm Azal Coffee's business or goodwill.
Azal Coffee may require franchisees to include specific notices in their advertising, such as the company's website domain name, toll-free number, or a statement about franchise availability. Franchisees are also required to include the phrase "Each Azal Coffee is independently owned and operated" in their advertising to the extent possible. All materials containing Azal Coffee's proprietary marks must include the appropriate designation (SM, TM, ®, or ©).
Furthermore, Azal Coffee may require or authorize franchisees to use certain technology, referred to as "Franchise Technology," in connection with their Franchise Business. This technology may include websites, point of sale and customer management systems, and other electronic media. The uses of this Franchise Technology may include advertising for all Azal Coffee locations, online ordering, and communication between Azal Coffee, franchisees, and customers. Franchisees must acquire and use the Franchise Technology specified by Azal Coffee and pay all required fees and costs associated with its use and maintenance.