Is Section 5.5 of the Azal Coffee Franchise Agreement deleted?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Parties." | | WHEREAS, Franchisee is a party to that certain Franchise Agreement dated, 20 | | ("Franchise Agreement") by and between Franchisee and the Company; |
WHEREAS, the Company is the Franchisor of Azal Coffee Stores and has the authority to disclose and discuss all information relating to the operations of an Azal Coffee Store;
WHEREAS, Confidential Information and Trade Secrets, which are more particularly described below, will be disclosed to the Franchisee Parties in relation to Franchisee's operation of its Azal Coffee Store franchise; and
WHEREAS, the Franchisee Parties understand the necessity of not disclosing any such information to any other party or using such information to compete against the Company, any affiliate(s) or other franchisee(s) of the Company, or in any business (i) that is a Competing Business (as defined below) or (ii) in which Trade Secrets and other Confidential Information (as defined below) could be used to the disadvantage of Franchisee, or the Company, any affiliate(s) of the Company, or the Company's other franchisees.
NOW, THEREFORE, in order to induce the Company to transmit the aforesaid information to the Franchisee Parties, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby agree as follows:
1) Franchise System
- a) The Company franchises a system for operation of a coffee café that specializes in Yemeni-grown coffee and that sells coffee based beverages, cold drinks, teas, coffee beans, coffee accessories, pastries, baked goods, and other related items, all of which are proprietary and are identified by the public with Azal Coffee products; prescribed exterior and interior design, decor, seating, fixtures, and furnishings; standards and specifications for products and supplies; service standards; uniform standards, specifications, and procedures for operations; training and assistance; and advertising and promotional programs (collectively "Systems"); all of which may be changed, improved, and further developed by the Company.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
Based on the 2024 Azal Coffee Franchise Disclosure Document, there is no explicit mention of Section 5.5 being deleted. However, Section 5 pertains to the confidential information agreement, which outlines the franchisee's obligations regarding the use and protection of Azal Coffee's proprietary information.
The agreement emphasizes that the franchisee parties must not disclose any confidential information or trade secrets to any other party or use such information to compete against Azal Coffee, its affiliates, or other franchisees. This obligation extends both during the term of the Franchise Agreement and even after its termination.
The document specifies that the company's sole obligation is to provide confidential information to the franchisee parties at the outset of their business relationship, enabling them to open and operate the franchise business. After providing this information, the company has no further obligations under the agreement. Prospective franchisees should confirm with Azal Coffee whether Section 5.5 is still applicable and understand the full scope of their confidentiality obligations.