Can Azal Coffee require Azal Coffee franchisees to participate in marketing and promotional programs?
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. we may require you to only use Digital Marketing through central accounts established by us. You must provide us with login, password, administrative password, security codes, and other information necessary for us to access and use (including use for marketing to your customers) any Digital Marketing accounts we authorize you to use. We have the right to control all responses to postings by customers and/or the public on Digital Marketing platforms relating to the Franchise Business.
9.8 Photo and Video Release.
You acknowledge and agree that we may take photos and/or videos in your Store or elsewhere and those photos and videos may include photos and videos of your owners, employees, and customers. If we desire to take photos or videos in your Store, we will provide you with notice one week prior to our arrival. We will not engage in photo or video shoots in your Store more than four (4) times per year.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee has the authority to establish advertising policies and procedures that franchisees must adhere to. These policies may include mandatory participation in promotional activities. Azal Coffee maintains control over all marketing content, mandating that franchisees secure written approval before utilizing any marketing or promotional materials, including signage, not provided or previously approved by Azal Coffee. Franchisees must submit these materials at least 30 days before their intended use.
Azal Coffee retains the right to disapprove any advertising materials, even those previously approved, and franchisees must immediately cease using such materials upon written notice. Franchisees are prohibited from using unapproved advertising materials and must avoid any business or advertising practices that could harm Azal Coffee's business or brand reputation. Furthermore, Azal Coffee may require franchisees to include specific elements in their advertising, such as the company's website, toll-free number, or a statement about franchise availability, along with the phrase "Each Azal Coffee is independently owned and operated" where possible.
Azal Coffee also manages a marketing fund, to which franchisees contribute as outlined in Section 4.3 of the FDD. While Azal Coffee is not obligated to implement or maintain a marketing fund, if one exists, they have sole discretion over its administration. The fund can be used for various purposes, including enhancing brand recognition, developing marketing materials, conducting promotional programs, providing marketing support, and developing franchise technology. Azal Coffee is not required to spend contributions in any specific market or media and will provide an annual report of the fund's receipts and disbursements upon request.