Is Azal Coffee required to issue its specifications to its franchisees?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
nder Specifications
Although we have the right to require you to purchase all items used in the Store from Designated and Approved Suppliers, in our discretion we may issue specifications for certain products and allow you to purchase those products from any source as long as the products comply with our specifications. We formulate and modify our specifications based on our experience in the business. Factors that we consider include reliability and practicality for the intended use, and quality and uniformity of products and services. Except as described above with respect to the approval of products or suppliers, we are not required to issue our specifications to our franchisees. Also, we may not issue specifications for some products and supplies and we may allow you to purchase those products and supplies from any source until we do issue specifications and/or supplier requirements for those items.
Your lease must be approved by us. However, we will not evaluate or be responsible for the commercial reasonableness or suitability of your lease. That is your sole responsibility and we recommend that you engage independent counsel to assist you in the evaluation and negotiation of your lease. Also, unless we otherwise agree, you and your landlord must sign a Lease Addendum acknowledging certain rights we have under the Franchise Agreement that relate to your lease and you must sign a Collateral Assignment of Lease that assigns the lease to us at our option on the occurrence of certain events.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–25)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee is generally not required to issue its specifications to its franchisees. However, Azal Coffee may issue specifications for certain products and allow franchisees to purchase those products from any source, provided they comply with Azal Coffee's specifications.
For items other than Designated Products or Services, Azal Coffee will furnish franchisees with any issued standards and specifications, as well as any issued criteria for supplier approval, but only on a confidential basis and upon request. Franchisees may also request approval for alternative suppliers for items other than Designated Products or Services by submitting the necessary information, samples, or agreements.
Azal Coffee formulates and modifies its specifications based on its experience in the business, considering factors such as reliability, practicality, quality, and uniformity of products and services. However, Azal Coffee may not issue specifications for some products and supplies, allowing franchisees to purchase those items from any source until specifications or supplier requirements are established.