Is an Azal Coffee franchisee allowed to make agreements, warranties, guarantees, or representations on behalf of the franchisor without express authorization?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
fy. You understand and acknowledge that the Franchise Business may lose money or fail.
19.2 Our Representations.
You acknowledge and agree that, except as specifically stated in this Agreement or our Franchise Disclosure Document or the attached "Acknowledgments by Franchisee," no representations or warranties, express or implied, have been made to you, either by us or anyone acting on our behalf or purporting to represent us, including the prospects for successful operations, the level of business or profits that you might reasonably expect, the desirability, profitability, or expected
traffic volume or profit of the Franchise Business. You acknowledge that all those items are dependent on variables beyond our control, including the ability, motivation and amount and quality of effort you expend. You acknowledge that we and our agents and representatives have not made and are not authorized to make any oral, written, or visual representations or projections of actual or potential sales, earnings, net or gross profits, operational costs or expenses, prospects or chances of success that are not contained in this Agreement or in our Franchise Disclosure Document.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are restricted from making unauthorized representations or warranties on behalf of the franchisor. Specifically, the FDD states that no representations or warranties, either express or implied, have been made to the franchisee, either by the franchisor or anyone acting on its behalf. This includes representations regarding the prospects for successful operations, potential business levels or profits, or the desirability, profitability, or expected traffic volume of the franchise business.
Azal Coffee emphasizes that these factors are dependent on variables beyond the franchisor's control, such as the franchisee's own abilities, motivation, and effort. The franchisor explicitly states that its agents and representatives are not authorized to make any oral, written, or visual representations or projections of actual or potential sales, earnings, net or gross profits, operational costs or expenses, prospects, or chances of success that are not contained in the Franchise Agreement or the Franchise Disclosure Document.
This provision protects Azal Coffee from liability for any unauthorized claims or promises made by franchisees. It also ensures that prospective franchisees rely only on the information provided in the official documents, promoting transparency and informed decision-making. Franchisees must be careful not to make any statements that could be interpreted as guarantees or promises about the potential success or profitability of the franchise, as this could lead to legal issues.