What must an Azal Coffee franchisee do with any business name containing the Marks upon termination?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 16 - EFFECT OF TERMINATION OR EXPIRATION
16.1 Your Obligations on Expiration or Termination.
If this Agreement expires or terminates for any reason (including termination on a transfer), your rights to use the Intellectual Property and the Franchise Systems and all other rights associated with being an authorized Azal Coffee franchisee will cease and you must do the following:
- (a) You must immediately and permanently discontinue the use of the Intellectual Property, the Confidential Information, the Franchise Systems, and any trademarks, names, and logos confusingly similar to the Marks or Trade Dress, and any other materials that may, in any way, indicate that you are or were an Azal Coffee franchisee, or in any way associated with us.
- (b) You must immediately discontinue all advertising placed or ordered. You must remove and deliver to us all sign faces, advertising and promotional material, letterhead, forms, and any other items containing the Intellectual Property or the Confidential Information. You are responsible for the cost of sign and other identification removal and the cost of shipping signs and other materials to us. If you remain in possession of the Franchise Location, you must alter the premises to distinguish the premises from the appearance of a Store.
- (c) You must cease using the Brand Standards Manual, the Confidential Information, and all other proprietary business information provided by us and must return to us all copies of the Brand Standards Manual, the Confidential Information, and other bulletins or other materials received from us containing information about the Intellectual Property and Stores.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, if the Franchise Agreement expires or terminates for any reason, the franchisee's rights to use the Intellectual Property and the Franchise Systems will cease. The franchisee must immediately and permanently discontinue the use of any trademarks, names, and logos confusingly similar to the Marks or Trade Dress, and any other materials that may indicate that they are or were an Azal Coffee franchisee. This includes discontinuing the use of all telephone and fax numbers, email addresses, website addresses, domain names and other electronic media that have been used in the Franchise Business.
Azal Coffee retains the sole right to all Telephone Numbers and Electronic Media used in the Franchise Business and all written and online directory listings associated with the Franchise Business. The franchisee authorizes Azal Coffee to direct the applicable service providers and all listing agencies to transfer those items to them or their agent or assignee if the franchisee fails or refuses to do so. This ensures that upon termination, the franchisee cannot continue to operate under a similar name or utilize the same contact information, which could confuse customers or infringe on Azal Coffee's brand identity.
This requirement is standard practice in franchising to protect the brand's intellectual property and prevent former franchisees from unfairly competing or misrepresenting themselves as part of the franchise system. Prospective Azal Coffee franchisees should understand these obligations and be prepared to fully relinquish all association with the brand upon termination of the Franchise Agreement.