If a governmental department issues a warning concerning an Azal Coffee franchise, does this trigger a notification requirement?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
10.5 Notices of Certain Events.
You must notify us in writing of the details of any of the following events, within one (1) business day of the occurrence of the event:
- (a) The start of any civil or criminal action, suit, countersuit or other proceeding against you or any Designated Owner, or the General Manager.
- (b) You, any Designated Owner, or the General Manager receives a notice of noncompliance with any law, rule, or regulation.
- (c) The issuance of any conviction or plea of guilty or no contest in a criminal matter, order, writ, injunction, award, or decree of any court or other tribunal, any agency, or other governmental organization against you, any Designated Owner, or the General Manager.
- (d) Any governmental department or agency begins an investigation of the Franchise Business, schedules a review, inspection, or audit of the Franchise Business, issues a complaint, report, warning, certificate or rating concerning you or the Franchise Business, or takes any action against the Franchise Business.
You must provide us with any additional information we request, within five (5) days of request, about the status, progress or outcome of any of the events listed in this Section. Your failure to provide the notice and/or additional information required by this Section 10.5 will be considered 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, franchisees are required to notify Azal Coffee in writing within one business day if a governmental department or agency issues a warning concerning the franchise business. This requirement is part of a broader set of obligations related to legal and regulatory compliance.
Specifically, the franchisee must inform Azal Coffee if any governmental body begins an investigation, schedules a review, inspection, or audit, issues a complaint, report, warning, certificate, or rating, or takes any action against the franchise business. This ensures that Azal Coffee is promptly informed of any potential issues that could affect the franchise's operations or reputation.
Furthermore, the franchisee is obligated to provide any additional information requested by Azal Coffee regarding the status, progress, or outcome of these events within five days of the request. Failure to comply with these notification requirements constitutes a material default under the Franchise Agreement, which could lead to penalties or termination of the agreement. This requirement helps Azal Coffee maintain oversight and address any issues that may arise in a timely manner.