Is an Azal Coffee franchisee allowed to solicit business through the internet?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
umbers used in connection with the Franchise Business, including in connection with advertising and marketing for the Franchise Business. For purposes of this Agreement, "Electronic Media" means the Internet, email, websites, mobile applications, social networks, wikis, podcasts, online forums, content sharing communities, blogging, other social media accounts or participations (including Facebook, Twitter, LinkedIn, YouTube, Pinterest, and Instagram), mobile technology, and other digital media, digital coupons, keyword or adword purchasing programs, search engine optimization, search engine marketing, and marketing using other forms of digital media, used in connection with the operation, advertising, and marketing of the Franchise Business.
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- Assignment of Telephone Numbers/Power of Attorney. Franchisee assigns all Telephone Numbers to Franchisor or its successor or assign. Franchisee hereby appoints an officer of Franchisor as Franchisee's attorney-in-fact to transfer the Telephone Numbers to Franchisor and to sign, on behalf of Franchisee, all documents necessary to accomplish the transfer.
- 3. Assignment of Electronic Media/Power of Attorney. Franchisee assigns all Electronic Media to Franchisor or its successor or assign. Franchisee also hereby appoints an officer of Franchisor as Franchisee's attorney-in-fact to transfer the Electronic Media to Franchisor and to sign, on behalf of Franchisee, all documents necessary to accomplish the transfer.
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- Limited License; Responsibility for Costs. Franchisor grants Franchisee a limited license to use the Telephone Numbers and Electronic Media in connection with the Franchise Business only during the term of the Franchise Agreement and only as long as Franchisee complies with the policies and procedures specified by Franchisor. On the expiration without renewal or termination of the Franchise Agreement, this limited license will terminate and Franchisee must cease all use of the Telephone Numbers and Electronic Media. On the termination of this license, Franchisee must cooperate with Franchisor and provide any authorizations as may be necessary for Franchisor to assert its rights in the Telephone Numbers and Electronic Media. While this limited license is in effect, Franchisee is responsible for all costs associated with the Telephone Numbers and Electronic Media and, unless otherwise specified by Franchisor, must pay those costs directly to the providers of the Telephone Numbers and Electronic Media.
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- Access to Telephone Numbers and Electronic Media. Franchisor will have the right to access all accounts relating to the Telephone Numbers and Electronic Media. Franchisee must provide to Franchisor all information necessary to allow Franchisor to access those accounts, including usernames, passwords, security codes, and all changes to any of that information.
- 6. Consent. Franchisee hereby consents and authorizes any and all telephone companies, telephone directory services, Internet companies and other public or private businesses using, authorizing or providing any of the Telephone Numbers and Electronic Media to immediately recognize this Assignment upon receipt of written notice from Franchisor.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 42)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are permitted to use electronic media for advertising and marketing, but with significant stipulations. The term "Electronic Media" is defined broadly to include the Internet, email, websites, mobile applications, social networks, and various other digital platforms. However, franchisees are required to assign all rights and control of their Electronic Media related to the Azal Coffee franchise to the franchisor, Durar Investment, LLC. This assignment includes the franchisor having the power of attorney to transfer and sign documents necessary for the transfer of these electronic media assets.
This means that while franchisees can technically solicit business through the internet, they do so using platforms and content that are ultimately controlled by Azal Coffee. The franchisor maintains the right to set advertising policies and procedures, which may include required promotions, geographic marketing limitations to avoid overlap with other franchisees, and restrictions on the types of marketing used. All advertising, including signage, must be factual, dignified, and pre-approved in writing by Azal Coffee. The franchisor reserves the right to disapprove any advertising materials at any time, and franchisees must immediately cease using disapproved materials.
Furthermore, Azal Coffee may specify that all advertising contains notices of their website domain name, other digital marketing initiatives, or a toll-free telephone number. This level of control allows Azal Coffee to ensure brand consistency and manage the overall marketing strategy across all franchise locations. The franchisee's compliance with these advertising and marketing guidelines is critical, as any deviation could be considered a breach of the franchise agreement.
In practical terms, a prospective Azal Coffee franchisee should understand that their online presence and digital marketing efforts will be heavily managed and potentially owned by the franchisor. While this arrangement ensures brand uniformity and potentially leverages the franchisor's marketing expertise, it also limits the franchisee's autonomy in crafting and executing their own marketing strategies. Franchisees should seek clarity on the specific advertising policies, approval processes, and the extent of control Azal Coffee will exert over their Electronic Media before entering into a franchise agreement.