What is the required action of the Designated Owner when trying to resolve disputes with Azal Coffee?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (f) Throughout the term of this Agreement you have satisfied all material reporting requirements and all monetary obligations to us and our affiliates, suppliers, vendors, and creditors (excepting reasonable disputes that you are attempting in good faith to resolve) within the amount of time specified for satisfaction or cure of default with respect to the obligation.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
The 2024 Azal Coffee Franchise Disclosure Document outlines specific requirements a franchisee must meet to renew their franchise agreement, including how disputes are handled. To be eligible for a renewal, the franchisee must be in good standing with Azal Coffee and its affiliates.
Specifically, the franchisee must have satisfied all material reporting requirements and all monetary obligations to Azal Coffee, its affiliates, suppliers, vendors, and creditors within the specified time frame for satisfaction or cure of default. However, the FDD makes an exception for "reasonable disputes that you are attempting in good faith to resolve."
This indicates that if a franchisee has a legitimate dispute over a payment or obligation, and they are actively working to resolve it in good faith, this will not automatically disqualify them from renewing their franchise agreement with Azal Coffee. It is important for prospective franchisees to understand the criteria for renewal and the importance of addressing any disputes promptly and in a documented, good-faith manner to maintain eligibility for renewal.