Does Azal Coffee have the right to inspect and approve the construction of the Franchise Location before opening?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
In addition, your Franchise Location must be constructed or improved in accordance with the specifications we have issued for build-out, décor, signage, equipment layout, front of the house and back of the house space layout, etc. We must approve all drawings, plans and specifications relating to the design, construction and/or improvement of the Franchise Location. We will have the right to inspect and approve the construction before you open your Store to make sure the approved plans and any specifications issued by us have been followed. If, in our opinion, the approved plans and any applicable specifications have not been followed, you must resolve any issues to our satisfaction before opening your Store. Although we have the right to review and comment on and must approve all drawings, plans and specifications relating to the design,
construction, and/or improvement of your Franchise Location, we are only acting to ensure compliance with the approved plans and any applicable specifications issued by us. We will not evaluate or be responsible for compliance with governmental requirements, legal requirements or adequacy of design and engineering relating to the design and construction and/or improvement of your Franchise Location and you are solely responsible for those matters.
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 retains significant control over the construction and improvement of franchise locations. Azal Coffee must approve all drawings, plans, and specifications related to the design, construction, and/or improvement of the Franchise Location. Furthermore, Azal Coffee has the right to inspect and approve the construction before the franchisee opens their store to ensure compliance with the approved plans and specifications. If the plans and specifications have not been followed to Azal Coffee's satisfaction, the franchisee must resolve any issues before opening.
While Azal Coffee maintains the right to review, comment on, and approve all construction-related documents, the company states that it is only acting to ensure compliance with its approved plans and specifications. Azal Coffee explicitly states that it will not evaluate or be responsible for compliance with governmental requirements, legal requirements, or the adequacy of design and engineering related to the construction or improvement of the franchise location. The franchisee is solely responsible for these matters.
This level of oversight is fairly typical in franchising, as franchisors need to maintain brand consistency and ensure locations meet operational standards. However, it's important for prospective Azal Coffee franchisees to understand that while Azal Coffee has approval rights, the franchisee bears the ultimate responsibility for ensuring the location complies with all applicable laws and regulations. Franchisees should engage their own experts to ensure full compliance.