What are the Azal Coffee franchisee's obligations regarding employees as outlined in Section 6.7 of the franchise agreement?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
onnel in accordance with our specifications.
7.3 Additional Training, Sales Programs and Meetings.
A Designated Owner (or, if specified by us, the General Manager or other management employees) must, solely at your expense, attend additional training, sales programs, and meetings reasonably specified by us, including regular periodic franchise meetings if specified by us. We will give reasonable notice of any additional specified training, sales programs, and meetings. We may require you to pay a reasonable charge for any training provided to you and/or your managers beyond the initial training program described in Section 7.1. Any fees we charge will be uniform as to all persons attending additional training at that time. We may require that you complete additional training before offering new Authorized Products from the Franchise Business.
We may require that your managers, including replacement managers in the event any previously trained manager-level employees are no longer employed at the Franchise Business, satisfactorily complete our training programs and additional training programs. We may charge reasonable fees for training managers. You are responsible for paying the wages or salaries, expenses for travel, food and lodging incurred by your employees during all training courses and programs. You agree to assist us in training other Azal Coffee franchisees; provided that, we must reimburse you for any expenses you incur in providing this assistance.
If you or your management personnel fail to attend required additional training without our consent, we may charge you liquidated damages under Section 15.7.
If you request additional assistance at any time, you will be responsible for our trainer's per diem fee and related travel costs. You must also pay wages, employment related expenses, travel, and living expenses for your employees. If we, in our sole discretion, complete the opening assistance and training and determine that your management staff needs additional training, you are responsible for the additional training costs, including wages, travel, and living expenses of our staff. If you or any member of your team fails to complete the training program to our satisfaction, in our sole and unfettered judgment, we may terminate this Agreement.
We will not be obligated to continue any specific ongoing training or advice we provide based on course of dealing or otherwise. We may discontinue or modify any ongoing training or advice at any time.
ARTICLE 8 – OPERATIONS AND SYSTEM STANDARDS
8.1 Continuing Operations and Best Efforts.
You acknowledge that the reputation and goodwill of the Franchise System is based in large part on offering high quality products and services to its customers. Accordingly, you shall provide or offer for sale or use at the Store only those menu items, products, goods, supplies, uniforms, proprietary apparel, proprietary promotional items, small wares, paper products, coffee beans, coffee products, food items, beverages, supplies, and other items, products and services that we from time to time approve (and which are not thereafter disapproved) and that comply with our Brand Standards Manual. You must at all times during the term of this Agreement keep the Franchise Business open and fully operational in compliance with the provisions of this Agreement and our specifications during the days and business hours designated by us from time to time in the Brand Standards Manual or as otherwise designated by us in writing. The Franchise Business will only be considered open and fully operational when the Franchise Business is open to the public, fully staffed, and ready and able at that time to provide all products and services offered by the Franchise Business. In addition to, or instead of our other available remedies, including termination, we may impose liquidated damages under Section 15.7 for each day the Franchise Business is not open and fully operational during the days and business hours designated by us, unless due to fire, flood, earthquake or other similar causes beyond your control and not related to your lack of funds. You must use your best efforts to promote and maximize the sales of the Franchise Business throughout the term of this Agreement. You must maintain at all times, sufficient equipment, supplies, and personnel to operate the Franchise Business at optimal capacity and efficiency.
8.2 Standards of Operation; Brand Standards Manual.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
Based on the 2024 Azal Coffee Franchise Disclosure Document, franchisees have several obligations regarding their employees. Franchisees must ensure their employees attend additional training programs as required by Azal Coffee. The franchisee is responsible for covering the costs of wages or salaries, travel, food, and lodging for their employees during these training courses.
Azal Coffee may require managers, including replacement managers, to complete training programs and can charge reasonable fees for this training. If a franchisee or their management personnel fail to attend required training without consent from Azal Coffee, the franchisee may be charged liquidated damages. Additionally, franchisees are responsible for the wages, employment-related expenses, travel, and living expenses of Azal Coffee staff if additional training is needed due to the franchisee's management staff requiring further assistance.
Furthermore, franchisees must comply with all federal, state, and local laws, rules, regulations, and orders related to their employment relationship with their employees. This includes, but is not limited to, laws such as the Fair Labor Standards Act, Family and Medical Leave Act, Affordable Care Act, and the Occupational Safety and Health Act. Franchisees must also adhere to comparable laws regulating minimum wage, overtime pay, recordkeeping, and youth employment standards. These obligations ensure that Azal Coffee franchisees operate their businesses in compliance with all applicable employment laws and provide adequately trained staff.