Does Azal Coffee grant franchises or licenses to other persons or entities independently and separately from the agreement with me?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You acknowledge and agree that we are entering into this Agreement with you independently and separately from any franchise or license that we have granted or may grant to any other person or entity, and that you are not entering into this Agreement in reliance on or because of any other agreement that we have entered or may enter into with a third party. You acknowledge and agree that the terms of our agreements with third parties, now and in the future, may be materially different with respect to any terms and condition of this Agreement, including royalty fees, advertising fees, transfer fees, territorial exclusivity, renewals and training. These variations may be based on any factors or conditions that we deem to be in the best interest of the Azal Coffee franchise system or a particular Store, including the knowledge, experience and financial status of a franchisee, peculiarities of a particular location, customer base, density, lease provisions, business potential, population of trade area, existing business practices, or any other condition that we deem to be of importance to the operation of a specific Store. Also, these variations may result from us, in our sole discretion, compromising, forgiving, or settling claims or disputes with or against other franchisees. You will not be entitled to require us to disclose or grant to you a like or similar variation.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee enters into franchise agreements independently of other agreements. The agreement with a franchisee is separate from any other franchise or license Azal Coffee has granted or may grant to another person or entity.
This means that a prospective Azal Coffee franchisee cannot rely on the terms of any other agreement Azal Coffee has with a third party. The terms and conditions, including royalty fees, advertising fees, transfer fees, territorial exclusivity, renewals, and training, may vary significantly from one franchisee to another. These variations are based on factors that Azal Coffee deems to be in the best interest of the Azal Coffee franchise system or a particular store.
These factors can include the franchisee's knowledge, experience, financial status, the location's peculiarities, the customer base, density, lease provisions, business potential, population of the trade area, existing business practices, or any other condition that Azal Coffee considers important to the operation of a specific store. Azal Coffee also reserves the right to compromise or settle claims or disputes with other franchisees without extending the same terms to all franchisees. Therefore, a franchisee cannot demand the same variations or terms granted to another franchisee.