What is the Azal Coffee franchisee required to do to cooperate with the franchisor after termination of the license?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
- (d) You must immediately and permanently cease to use all telephone and fax numbers, email addresses, website addresses, domain names and other electronic media that have been used in the Franchise Business (the "Telephone Numbers" and "Electronic Media") and if requested by us, must assign some or all of these Telephone Numbers and Electronic Media to us. You acknowledge that as between you and us, we have 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. You authorize us, and appoint us and any of our officers as your attorney-in-fact, to direct the applicable service providers and all listing agencies to transfer those items to us or our agent or assignee if you fail or refuse to do so. You authorize the applicable service providers and all listing agencies to accept the dir
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 Azal Coffee's intellectual property and franchise systems cease, and they must take specific actions. These include immediately discontinuing the use of the Intellectual Property, Confidential Information, and Franchise Systems, as well as any trademarks, names, and logos that are similar to Azal Coffee's marks or trade dress. The franchisee must also stop all advertising and remove and deliver to Azal Coffee all signs, advertising materials, letterhead, and forms containing Azal Coffee's intellectual property or confidential information. The franchisee is responsible for the costs associated with removing signs and shipping materials to Azal Coffee. If the franchisee remains in possession of the franchise location, they must alter the premises to differentiate it from the appearance of an Azal Coffee store.
Additionally, the franchisee must stop using the Brand Standards Manual, Confidential Information, and all other proprietary business information provided by Azal Coffee, and return all copies of these materials. The franchisee must also cease using all telephone and fax numbers, email addresses, website addresses, domain names, and other electronic media associated with the franchise business. If requested by Azal Coffee, the franchisee must assign some or all of these telephone numbers and electronic media to Azal Coffee. The franchisee acknowledges that Azal Coffee has the sole right to all telephone numbers and electronic media used in the franchise business, including all written and online directory listings.
Furthermore, the franchisee authorizes Azal Coffee, and appoints any of its officers as their attorney-in-fact, to direct service providers and listing agencies to transfer these items to Azal Coffee or its agent if the franchisee fails or refuses to do so. This authorization extends to allowing service providers and listing agencies to accept directions from Azal Coffee for the transfer of these items. These post-termination obligations are designed to protect Azal Coffee's brand and proprietary information and ensure a clean break between the franchisee and the franchise system.