Does Azal Coffee's obligation to provide representatives for initial operation assistance apply on renewal or transfer of the franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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During Operation
During the operation of your franchise, we will:
- When developed by us, provide you with access to any updates to our Brand
Standards Manual and other specifications for all aspects of the Store (Section 5.3 of Franchise Agreement).
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- Provide ongoing training as specified by us (Section 5.4 and Article 7 of Franchise Agreement).
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- Provide 1 or more representatives for up to 5 days from opening (the specific number of days will be determined by us) to assist in the initial operation of your Store (Section 5.5) of Franchise Agreement). This obligation does not apply on renewal or transfer (Section E of Renewal Addendum and Section E of Transfer Addendum). If you request the assistance of our representatives beyond the 5-day period, we may provide the representatives for an additional period of time, but you must pay a charge for the additional services in an amount determined by us.
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- Designate the Authorized Products to be offered by the Store and provide you with updates in our specifications for the Authorized Products. We will also provide sources of supply for all products used in the Store and will review for approval any products or services or suppliers requested by you, except with respect to any Designated Products or Services (Sections 5.6, 8.5 and 8.6 of Franchise Agreement).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the obligation to provide representatives for initial operation assistance does not apply when renewing or transferring a franchise. Specifically, Azal Coffee offers representatives for up to 5 days from the store opening to assist in the initial operation. This initial assistance is outlined in Section 5.5 of the Franchise Agreement. However, this assistance is not provided upon renewal or transfer of the franchise, as stated in Section E of both the Renewal Addendum and the Transfer Addendum.
Additionally, Azal Coffee will provide a representative for up to 2 days prior to the store opening and continuing for up to 2 days after the store opening to assist in training staff and opening the franchise business. This obligation also does not apply on renewal or transfer.
However, in the event of a transfer, Azal Coffee will provide the initial training program. This means that while the on-site operational support is not provided during a transfer, the new franchisee will still receive the necessary training to operate the Azal Coffee franchise.