What rights does Azal Coffee have in the event of a data breach at a franchise location?
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, Azal Coffee has the right to engage a vendor to consult with and advise franchisees on compliance with PCI Requirements and Information Security Standards. Azal Coffee can require franchisees to pay a portion of the cost of the vendor's services, as determined by their policies and procedures, or directly engage the vendor for these purposes.
Additionally, Azal Coffee has the right to acquire a cyber insurance policy for the entire franchise system and require franchisees to pay a portion of the cost, again as determined by Azal Coffee's policies and procedures. Azal Coffee can collect the franchisee's share of these costs periodically, as outlined in Section 4.13 of the agreement.
This means that as an Azal Coffee franchisee, you may be required to contribute to the costs of both cybersecurity consulting services and a cyber insurance policy to protect the franchise system from data breaches. The specific amount you'll be required to pay will be determined by Azal Coffee's policies and procedures, and these costs will be collected periodically.