Does Azal Coffee have an obligation to advise franchisees on legislative or legal developments?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
provided in Section 4.13 of this Agreement.
8.13 Compliance with Laws and Other Obligations; Taxes.
You must obtain and keep in force every registration, charter, license, and permit required for the Franchise Business. In addition to all other references in this Agreement, you shall comply with all requirements of federal, state and local laws, rules, regulations, and orders related to the operation of your Store, including but not limited to obtaining the appropriate licenses and permits required by your local or state government and are required to operate the Store in compliance with the requirements of all federal, state, and local laws, rules, regulations, or ordinances that govern food preparation and service and Store sanitary conditions, the federal Clean Air Act and various implementing state laws require certain state and local areas to meet national air quality standards limiting emissions of ozone, carbon monoxide and particulate matters, including caps on emissions from commercial food preparation, all federal, state, and local laws, rules, regulations, and ordinances that govern your employment relationship with your employees, and other laws, rules and regulations that apply to business generally, such as the Americans With Disabilities Act, Fair Labor Standards Act, Family and Medical Leave Act, Affordable Care Act, Federal Wage and Hour Laws, Title VII of the Civil Rights Act, Age Discrimination in Employment Act, Affordable Care Act., Employee Retirement Income Security Act, and the Occupational Safety and Health Act, also apply to Stores, and comparable laws regulating minimum wage, overtime pay, recordkeeping, youth employment standards, and other aspects of employment), environmental regulation, and taxation.
You must pay, when due, all taxes of every kind applicable to the Franchise Business or the income of the Franchise Business, including all local, state, and federal taxes. We will not be responsible for any sales, use, service, occupation, excise, gross receipts, income, property, or other taxes, whether levied on you or the Franchise Business, due to the business you conduct (except for our income taxes). You are responsible for paying these taxes and must reimburse us for any taxes that we pay to any federal, state, or local taxing authority on account of your operations or payments that you make to us.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are responsible for complying with all applicable federal, state, and local laws, rules, regulations, and orders related to the operation of their store. This includes obtaining and maintaining all necessary registrations, charters, licenses, and permits.
The FDD states that Azal Coffee may engage a vendor to consult with and advise franchisees on compliance with PCI Requirements and Information Security Standards. Franchisees may be required to pay a portion of the cost for these services or directly engage the vendor. Azal Coffee also has the right to acquire a cyber insurance policy for the franchise system, with franchisees potentially required to cover a portion of the cost.
While Azal Coffee outlines the franchisee's responsibility to comply with various laws and regulations, it does not explicitly state that Azal Coffee is obligated to advise franchisees on all legislative or legal developments. However, franchisees must adhere to laws related to food preparation and service, sanitary conditions, air quality standards, employment relationships, environmental regulation, and taxation. This includes compliance with acts such as the Americans With Disabilities Act, Fair Labor Standards Act, Family and Medical Leave Act, Affordable Care Act, and Occupational Safety and Health Act.
Prospective franchisees should inquire with Azal Coffee about the extent to which the franchisor provides updates or guidance on changes in laws and regulations that may affect their business operations. Understanding the franchisor's role in keeping franchisees informed about legal compliance is crucial for the successful and lawful operation of an Azal Coffee franchise.