For Azal Coffee, what is the franchisee's responsibility regarding the supervision of the Franchise Business by a trained General Manager?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
8.9 Management of the Franchise Business.
The individual or at least one (1) of the individuals designated in Item 4 on Appendix A (a "Designated Owner"), must: (a) preserve and exercise ultimate authority and responsibility with respect to the management and operation of the Franchise Business; and (b) represent and act on your behalf in all dealings with us. Each Designated Owner must have an ownership interest in Franchisee. If all of the Designated Owners listed in Item 4 of Appendix A resign, die, or become incapacitated, it will be considered a Transfer under the provisions of Article 14.
The Franchise Business must, at all times, be under the direct supervision of a general manager as described in this Section (the "General Manager"). The General Manager must: (i) devote his or her full time and effort to the day-to-day active management and operation of the Franchise Business; (ii) be personally responsible for the Franchise Business at all times; and (iii) personally exercise his or her best efforts to market the Franchise Business and maximize customer satisfaction. The General Manager must meet the following requirements before beginning to serve as General Manager for the Franchise Business: (1) successful completion of our initial training program and any retraining or refresher training programs specified by us; (2) signing an agreement relating to confidentiality and non-competition in a form approved by us; and (3) if specified by us, the General Manager must have an equity or profit participation interest in the Franchise Business.
If a Designated Owner is not the General Manager, the General Manager must be under the direct supervision of a Designated Owner. It is your responsibility to ensure that the Franchise Business is always under the supervision of a trained General Manager. Your failure to have the Franchise Business under the supervision of a trained General Manager is a material default under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the Franchise Business must always be under the direct supervision of a General Manager. The General Manager is required to devote full-time effort to the active management and operation of the franchise, be personally responsible for the business at all times, and exert their best efforts to market the business and maximize customer satisfaction.
Before serving as General Manager, the individual must successfully complete Azal Coffee's initial training program, as well as any retraining or refresher programs specified by Azal Coffee. They must also sign an agreement relating to confidentiality and non-competition in a form approved by Azal Coffee. Additionally, if specified by Azal Coffee, the General Manager must have an equity or profit participation interest in the Franchise Business.
If a Designated Owner is not the General Manager, the General Manager must be under the direct supervision of a Designated Owner. It is the franchisee's responsibility to ensure that the Franchise Business is always supervised by a trained General Manager. Failure to comply with this requirement constitutes a material default under the Franchise Agreement, which could lead to penalties or termination of the agreement.