Does the issuance of an injunction against a Designated Owner of an Azal Coffee franchise require notification under the franchise agreement?
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 must notify Azal Coffee in writing within one business day of several events. These include the start of any civil or criminal action against the franchisee, a Designated Owner, or the General Manager.
Additionally, notification is required if the franchisee, any Designated Owner, or the General Manager receives a notice of noncompliance with any law, rule, or regulation. Franchisees must also report 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 them, any Designated Owner, or the General Manager.
Furthermore, franchisees must provide any additional information requested by Azal Coffee within five days of the request regarding the status, progress, or outcome of any of these events. Failure to provide the required notice or additional information constitutes a material default under the Franchise Agreement.