What is the name of the agreement that Azal Coffee franchisees and owners must sign?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Introduction. Franchisee has entered into a Franchise Agreement with Durar Investment, LLC ("Franchisor"). The Franchise Agreement requires Franchisee's lease for the Premises to contain certain provisions. In consideration of the agreement of Franchisor to enter into a Franchise Agreement with Franchisee for an Azal Coffee franchise to be located at the Premises, Landlord and Franchisee agree that the provisions contained in this Addendum will be applicable to the Lease notwithstanding anything to the contrary contained in the Lease.
- 2. Termination of Franchise Agreement. You and we agree that the Franchise Agreement is terminated as of the effective date of this Agreement.
- c) The Franchisee Parties and their shareholders, officers, directors, members, managers, partners, owners, and investors, Family Members, and affiliates, must not, during the term of the Franchise Agreement and for a period of three (3) years after termination, expiration, non-renewal, or any other end of the Franchise Agreement, for any reason whatsoever, directly or indirectly: (a) divert or attempt to divert any business or customer of the Franchise Business or any other Store to any Competing Business by direct or indirect inducements or otherwise; (b) sponsor, appoint, or encourage or influence or promote friends, relatives, or associates to operate a Competing Business; or (c) employ any person or furnish or permit access to the Information to any person who is engaged or has arranged to become engaged in any activity in competition with Azal Coffee Stores, including involvement, either as an owner (except no more than one percent (1%) of the publicly traded securities of an entity), partner, director, officer, member, manager, employee, consultant, lender, representative, or agent, or in any other capacity, of any business that is involved, in whole or in part, in a Competing Business or in any business
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to the 2024 Azal Coffee Franchise Disclosure Document, franchisees must enter into a "Franchise Agreement" with Durar Investment, LLC, the franchisor. This agreement establishes the terms and conditions under which the franchisee will operate their Azal Coffee store. The Franchise Agreement also requires that the franchisee's lease for the premises contain certain provisions, as outlined in an addendum to the lease agreement.
Additionally, the FDD mentions an agreement related to confidential information. Franchisee Parties must not disclose confidential information or trade secrets related to the Azal Coffee operations. This obligation extends both during the term of the Franchise Agreement and for a period of three years after its termination, expiration, non-renewal, or any other end. This agreement ensures that sensitive business information remains protected, preventing franchisees from using it to compete against Azal Coffee or its affiliates.
Furthermore, in the event of a transfer of the franchise, a Termination of Franchise Agreement is required. As a condition of the franchisor's consent to the transfer, the franchisee must release the franchisor from any liabilities or claims arising from agreements or actions predating the transfer date. This release does not affect the franchisee's rights and obligations under the Franchise Agreement itself, ensuring a clear separation of responsibilities and liabilities during the transfer process.