Who is required to sign Appendix B, 'Obligations and Representation of Owners,' for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
19.6 Ownership of Franchisee; Guaranties.
Your name, type of entity, state of organization, owners, and percentage of ownership are listed on the Obligations and Representations of Owners attached as Appendix B. You represent that the information stated in Appendix B is accurate and complete. You agree that you will immediately notify us (and comply with the provisions of Article 14, if applicable) if there is any change in the information contained in Appendix B. Your failure to comply with this requirement will be a material default under this Agreement. Each of your owners and their spouses must personally guaranty your obligations to us by signing the Guaranty attached as Appendix D. Also, if you have an affiliate that operates a Store, we may require your affiliate to guaranty all of your obligations to us by signing the Guaranty attached as Appendix D.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Appendix B, titled 'Obligations and Representations of Owners,' must be signed to ensure that the franchisor has accurate information about the franchisee's ownership structure. Specifically, the document states that the franchisee's name, type of entity, state of organization, owners, and percentage of ownership are listed on Appendix B.
The FDD indicates that the information provided in Appendix B must be accurate and complete. Franchisees are obligated to immediately notify Azal Coffee of any changes to this information, and failure to do so constitutes a material default under the Franchise Agreement. This ensures that Azal Coffee maintains current records of its franchisees' ownership details.
Furthermore, each owner of the Azal Coffee franchise and their spouses are required to personally guarantee the franchisee's obligations to Azal Coffee by signing the Guaranty attached as Appendix D. Additionally, if an affiliate of the franchisee operates a store, Azal Coffee may require that affiliate to also guarantee the franchisee's obligations by signing the Guaranty in Appendix D. This requirement provides Azal Coffee with additional security and recourse in case the franchisee fails to meet its obligations under the Franchise Agreement.