What must an Azal Coffee franchisee discontinue regarding advertising upon termination, except as assumed by the buyer?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Except as assumed by the Buyer, you must immediately discontinue all advertising placed or ordered. Except as transferred to the Buyer, 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.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, upon termination of the Franchise Agreement, a franchisee must immediately discontinue all advertising placed or ordered, except as assumed by the buyer. This means that if the franchise is transferred to a new owner (the buyer), and the buyer assumes responsibility for existing advertising, the original franchisee is not required to discontinue that specific advertising.
In addition to ceasing advertising, the franchisee must also remove and deliver to Azal Coffee all sign faces, advertising and promotional material, letterhead, forms, and any other items containing the Intellectual Property or the Confidential Information. The franchisee is responsible for the costs associated with removing signs and other identification, as well as the cost of shipping these materials back to Azal Coffee.
This requirement ensures that upon termination, the franchisee completely disassociates from the Azal Coffee brand, preventing any potential confusion or misuse of the brand's image and materials. The exception for advertising assumed by the buyer allows for a smooth transition in cases of franchise transfer, where ongoing advertising efforts can continue without interruption.