What is the responsibility of each Azal Coffee Franchisee Party regarding the Company's enforcement costs?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We will have the right to engage a vendor to consult with and advise Azal Coffee franchisees on compliance with the PCI Requirements and Information Security Standards and to require you to pay a portion of the cost of the vendor's services as determined under our policies and procedures or to directly engage the vendor for these purposes. Also, we have the right to acquire a cyber insurance policy for the Azal Coffee franchise system and to require you to pay a portion of the cost of the cyber insurance policy as determined under our policies and procedures. We will have the
right to collect your share of the costs of the vendor and/or cyber insurance policy on a periodic basis in the manner provided in Section 4.13 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees may be responsible for a portion of the costs associated with compliance and insurance. Specifically, Azal Coffee has the right to engage a vendor to consult with franchisees on compliance with PCI Requirements and Information Security Standards. Franchisees may be required to pay a portion of the cost of this vendor's services, as determined by Azal Coffee's policies and procedures, or they may be required to directly engage the vendor.
Additionally, Azal Coffee has the right to acquire a cyber insurance policy for the entire franchise system. Franchisees may be required to pay a portion of the cost of this cyber insurance policy, as determined by Azal Coffee's policies and procedures.
Azal Coffee retains the right to collect the franchisee's share of these costs (both the vendor's services and the cyber insurance policy) on a periodic basis, as outlined in Section 4.13 of the Franchise Agreement. This means that franchisees should be prepared to budget for these potential ongoing expenses in addition to their other operating costs. It is important for prospective franchisees to understand the specific policies and procedures Azal Coffee uses to determine each franchisee's share of these costs to accurately forecast their potential financial obligations.