Is Azal Coffee's pricing activity limited to certain geographic areas or subsets of franchisees?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ntributions paid to us under Section 4.3.
9.6 Advertising by You; Approval of Advertising Materials.
We have the right to set advertising policies and procedures that you must follow. These advertising policies and procedures may include required promotions, limiting marketing to a certain area so that you are not directing marketing to another franchisee's area, and limiting the type of marketing that you may use.
All advertising by you in any medium, including signage, must be factual and dignified, must conform to our standards and specifications, and to the highest standards of ethical advertising practice, and must be approved by us in writing before it is used. You must submit to us for approval all marketing and promotion materials, including signage, prepared by you for the Franchise Business and not prepared by or previously approved by us. These materials must be submitted at least thirty (30) days before use. If we do not approve advertising submitted to us in writing within the thirty (30) day period, the advertising shall be deemed disapproved. We have the right to disapprove the use of any advertising materials by you at any time. You must discontinue the use of advertising materials immediately on receipt of our written notice, even if we previously approved the use of advertising materials. You must not use any advertising materials not approved by us. You agree to refrain from any business or advertising that may be injurious to our business, or the goodwill associated with the Franchise Marks and Franchise Systems and other Stores.
If specified by us, all of your advertising must contain notices of: (a) our website domain name or other Digital Marketing specified by us; (b) our toll-free telephone number; and/or (c) a statement regarding the availability of Azal Coffee franchises. To the extent possible, you must include the following language in all advertising: "Each Azal Coffee is independently owned and operated." All materials containing our proprietary Marks must include the designation service mark SM, trademark TM, registered trademark ®, copyright ©, or any other designation we specify.
9.7 Digital Marketing.
You acknowledge that the use of the Internet, email, websites, social networks, wikis, podcasts, online forums, content sharing communities, blogging, other social media accounts or participations (including Facebook, Twitter, LinkedIn, YouTube, TikTok, Pinterest, and Instagram), mobile applications and technology, and other digital media, digital coupons, keyword or adword purchasing programs, search engine optimization, search engine marketing, marketing using other forms of digital media, and toll-free telephone numbers ("Digital Marketing") in connection with the operation, advertising, and marketing of the Franchise Business is subject to the trademark. advertising, marketing, and other requirements of this Agreement and the Brand Standards Manual. You must not use any Digital Marketing in connection with the Franchise Business, except with our written consent and then only in accordance with any policies and procedures specified by us. We have the sole right to control all Digital Marketing used to promote Stores (including the Franchise Business) and/or associated with the Franchise Marks. If we authorize you to use Digital Marketing.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the company has the right to set advertising policies and procedures that franchisees must follow. These policies may include limiting marketing to a certain area to prevent franchisees from directing marketing efforts into another franchisee's territory. This indicates that Azal Coffee can impose geographic limitations on a franchisee's marketing activities.
All advertising by the franchisee, regardless of the medium, must be factual, dignified, and conform to Azal Coffee's standards and specifications. Franchisees must obtain written approval from Azal Coffee before using any marketing or promotion materials that were not prepared or previously approved by the company. Submissions must be made at least thirty days before use, and failure to approve within this period is deemed disapproval. Azal Coffee retains the right to disapprove any advertising materials at any time, and franchisees must immediately cease using disapproved materials upon written notice.
Furthermore, Azal Coffee may specify required notices in all advertising, such as the company's website domain name, toll-free telephone number, or a statement regarding the availability of Azal Coffee franchises. Franchisees are also required to include the statement "Each Azal Coffee is independently owned and operated" in all advertising to the extent possible. All materials containing Azal Coffee's proprietary marks must include the appropriate designation (SM, TM, ®, or ©) as specified by the company. These stipulations ensure that franchisees adhere to Azal Coffee's advertising standards and guidelines.
Item 19.4 addresses the non-uniformity of agreements, stating that the terms of agreements with third parties may differ materially with respect to any terms and condition of the Franchise Agreement, including royalty fees, advertising fees, transfer fees, territorial exclusivity, renewals and training. These variations may be based on any factors or conditions that Azal Coffee deems to be in the best interest of the Azal Coffee franchise system or a particular Store, including the knowledge, experience and financial status of a franchisee, peculiarities of a particular location, customer base, density, lease provisions, business potential, population of trade area, existing business practices, or any other condition that Azal Coffee deems to be of importance to the operation of a specific Store. Also, these variations may result from Azal Coffee, in its sole discretion, compromising, forgiving, or settling claims or disputes with or against other franchisees. You will not be entitled to require Azal Coffee to disclose or grant to you a like or similar variation.