What is the radius, in miles, of the 'Geographic Areas' around an Azal Coffee Franchise Location?

According to Azal Coffee's 2024 Franchise Disclosure Document, the 'Geographic Areas' around an Azal Coffee franchise location extend to a radius of twenty-five miles. This definition is relevant to the agreement and restrictions on competition.

The 'Geographic Areas' definition includes not only the franchise location itself but also the area within 25 miles of that location. Additionally, it encompasses areas within 25 miles of any other Azal Coffee store that exists or is in development at the time a franchisee ceases to operate a competing business. This aspect is particularly important for franchisees considering exiting the system and potentially engaging in a similar business.

This definition of 'Geographic Areas' has implications for post-term competition. If a franchisee were to leave the Azal Coffee system and start a competing business, these geographic restrictions would apply. The franchisee would need to consider the proximity of their new venture not only to their former Azal Coffee location but also to any other existing or planned Azal Coffee stores within a 25-mile radius. This ensures that former franchisees do not directly undermine the existing Azal Coffee network.

The FDD states that Azal Coffee believes these restrictions are fair and reasonable to protect their and their franchisees' competitive business interests. However, Azal Coffee retains the right to reduce the scope of these restrictions at any time with notice to the franchisee. This provides Azal Coffee with flexibility but also introduces a degree of uncertainty for franchisees, as the competitive landscape could change during their franchise term.