Does an Azal Coffee franchisee have the right to request approval of alternative suppliers for Designated Supplier Products?

According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees do not have the right to request approval of alternative suppliers for Designated Supplier Products. Designated Supplier Products are those that Azal Coffee specifies must be purchased only from them or from a designated supplier. These products are essential for maintaining the uniqueness, consistency, quality, and identity of Azal Coffee stores. Azal Coffee retains the right to change Designated Supplier Products and Designated Suppliers at their sole discretion.

However, franchisees can request approval for suppliers of products and services that are not Designated Supplier Products. To do so, a franchisee must submit a written request including information about the product or supplier, a sample of the product or service, and contact information for the manufacturer or supplier. Azal Coffee may then submit this information to an independent expert to determine if the product or supplier meets their specifications. The franchisee may be charged a fee to cover the costs of this determination. Azal Coffee will provide its standards and specifications for non-designated items and supplier approval criteria on a confidential basis upon request.

Azal Coffee will notify the franchisee in writing of their approval or disapproval of a supplier within 30 days after receiving all necessary information. This process ensures that while franchisees must use designated suppliers for certain critical items, they have the opportunity to propose alternative suppliers for other products and services, potentially allowing for cost savings or access to unique offerings, while still maintaining Azal Coffee's quality standards.