Is an Azal Coffee franchisee required to comply with all lawful and reasonable policies and procedures specified by the franchisor?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Business.
8.4 Use of the Franchise Technology in Operations.
We may require or authorize you to use certain technology in connection with the Franchise Business, which may include websites, point of sale and customer management systems (which may include computer hardware, software, mobile applications, web-based systems, licenses to use proprietary software or systems, etc.), intranet, extranet, web-based systems, other electronic media, and/or other technology specified by us (the "Franchise Technology"). Uses of the Franchise Technology may include advertising for all Azal Coffees, lists of Azal Coffees, on-line ordering, inventory control for Stores, entering sales and other information, projecting sales, reviewing reports, placing orders with suppliers, posting the Brand Standards Manual and communication between us, franchisees and customers. You must acquire and use the Franchise Technology specified by us in the Franchise Business and in the manner specified by us. Your access to and use of the Franchise Technology is subject to your compliance with the terms and conditions of use and other policies and procedures specified by us. You agree to comply with those terms, conditions, policies and procedures. You must pay all required license fees, service fees, management fees, and support, maintenance, update, and upgrade costs to use and maintain the Franchise Technology in the manner specified by us. We may change or modify the Franchise Technology in the future, including changes in the specifications and components relating to the Franchise Technology. In that case, you must obtain and begin to use the changed or modified Franchise Technology within thirty (30) days after you receive written notice from us.
We have the right to independently access the sales information and other data generated or stored by the Franchise Technology and there are no contractual limitations on our right to access and use that information and data. You must provide us access to the information contained in or produced by the Franchise Technology in the manner specified by us and must supply us with any security codes necessary to obtain that access. We may retrieve, analyze, download and use the software and all data contained in or produced by the Franchise Technology at any time as long as the access does not unreasonably interfere with the operation of your Franchise Business. You must maintain high-speed Internet access at all times in the manner specified by us for communication with us, use of the Franchise Technology, and to allow us to access information from the Franchise Technology. Our rights to use the Franchise Technology data includes the right to deliver the data to any third party we deem appropriate in our sole discretion; provided that the identity and other personal information of your employees, agents, and customers are not improperly disclosed.
THE FRANCHISE TECHNOLOGY AND ITS CONTENT ARE PROVIDED "AS-IS," "WHERE-IS," and "WITH ALL FAULTS." WE AND OUR AGENTS AND LICENSORS DISCLAIM ANY AND ALL REPRESENTATIONS AND WARRANTIES RELATING TO THE FRANCHISE TECHNOLOGY, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT, REGARDING ANY CONTENT AND YOUR ABILITY OR INABILITY TO USE THE FRANCHISE TECHNOLOGY AND ITS CONTENT.
USE OF THE FRANCHISE TECHNOLOGY IS AT YOUR SOLE AND ABSOLUTE RISK. WE WILL NOT BE LIABLE TO YOU OR ANY PERSON CLAIMING THROUGH YOU FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY, COMPENSATORY, OR OTHER DAMAGES UNDER ANY THEORY OR LAW FOR ANY ERRORS IN OR THE USE OF OR INABILITY TO USE THE FRANCHISE TECHNOLOGY AND ITS CONTENT INCLUDING DAMAGES FOR LOST PROFITS, BUSINESS, DATA, OR DAMAGE TO ANY COMPUTER SYSTEMS.
8.5 Specifications and Suppliers for Products and Services.
The purpose of the product, service and supply requirements described in this Section is to maintain uniqueness, consistency, uniformity, quality and identity of Stores and the products and services offered and sold by Stores and the group purchasing power of Stores.
We may specify any products and services used in the design, development, construction, or operation of the Franchise Business as products and services that must be purchased only from us or a manufacturer, supplier, distributor, or professional or other service provider specifically designated by us (which may be our affiliate) (a "Designated Supplier"). You must acquire these designated products and services ("Designated Supplier Products") in accordance with our specifications (which may include brand names) and only from a Designated Supplier. You will have no right to request approval of alternative suppliers for Designated Supplier Products. We reserve the right to appoint us or any one of our affiliates as a Designated Supplier and require that you purchase any product or service from us or any one of our affiliates. These Designated Supplier Products and Designated Suppliers are subject to change in our sole and absolute discretion.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must adhere to the standards and procedures set forth by the franchisor. Specifically, franchisees are required to use the Franchise Technology specified by Azal Coffee in their business operations and in the manner dictated by them. This includes websites, point of sale systems, customer management systems, and other electronic media. Franchisees must also comply with the terms, conditions, policies, and procedures related to this technology, and pay all associated fees for licenses, services, management, support, maintenance, updates, and upgrades. Azal Coffee retains the right to modify this technology in the future, and franchisees are obligated to adopt these changes within thirty days of written notice.
Azal Coffee franchisees are also obligated to comply with federal, state, and local laws, rules, and regulations related to their store's operation. This includes obtaining and maintaining all necessary registrations, charters, licenses, and permits. Compliance extends to areas such as food preparation and service, sanitary conditions, air quality standards, employment relationships, environmental regulation, and taxation. Specific laws mentioned include the Americans With Disabilities Act, Fair Labor Standards Act, Family and Medical Leave Act, Affordable Care Act, and the Occupational Safety and Health Act.
Furthermore, Azal Coffee franchisees must adhere to the franchisor's advertising policies and procedures, which may include required promotions, limitations on marketing areas, and restrictions on the types of marketing used. All advertising materials, including signage, must be factual, dignified, and conform to Azal Coffee's standards, requiring written approval before use. The franchisor has the right to disapprove any advertising materials at any time, and franchisees must discontinue use of such materials upon written notice. The franchisee also agrees to avoid any business or advertising that could harm Azal Coffee's business or goodwill.