Does Azal Coffee require franchisees to acknowledge that they have not relied on any representations about earnings that are not contained in the Franchise Agreement or Franchise Disclosure Document?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
fy. You understand and acknowledge that the Franchise Business may lose money or fail.
19.2 Our Representations.
You acknowledge and agree that, except as specifically stated in this Agreement or our Franchise Disclosure Document or the attached "Acknowledgments by Franchisee," no representations or warranties, express or implied, have been made to you, either by us or anyone acting on our behalf or purporting to represent us, including the prospects for successful operations, the level of business or profits that you might reasonably expect, the desirability, profitability, or expected
traffic volume or profit of the Franchise Business. You acknowledge that all those items are dependent on variables beyond our control, including the ability, motivation and amount and quality of effort you expend. You acknowledge that we and our agents and representatives have not made and are not authorized to make any oral, written, or visual representations or projections of actual or potential sales, earnings, net or gross profits, operational costs or expenses, prospects or chances of success that are not contained in this Agreement or in our Franchise Disclosure Document.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must acknowledge that they have not relied on any representations or warranties, either express or implied, made by Azal Coffee or anyone acting on its behalf, except as specifically stated in the Franchise Agreement or the Franchise Disclosure Document. This includes representations about the prospects for successful operations, the level of business or profits that might be expected, or the desirability, profitability, or expected traffic volume or profit of the franchise. These factors are acknowledged to be dependent on variables beyond Azal Coffee's control, including the franchisee's own ability, motivation, and effort.
Furthermore, the document states that Azal Coffee and its agents have not made and are not authorized to make any oral, written, or visual representations or projections of actual or potential sales, earnings, net or gross profits, operational costs or expenses, prospects, or chances of success that are not contained in the Franchise Agreement or the Franchise Disclosure Document. Franchisees agree that they have not relied on, and Azal Coffee will not be bound by, any allegations of representations as to earnings, sales, profits, costs, expenses, prospects, or chances of success that are not contained in those documents.
This acknowledgment is a standard practice in franchising, intended to protect the franchisor from claims based on verbal promises or projections that are not formally documented. Prospective Azal Coffee franchisees should carefully review the Franchise Agreement and Franchise Disclosure Document and rely only on the information contained within those documents when making their investment decision. It is also advisable to consult with an attorney or financial advisor to fully understand the implications of this acknowledgment.