What specific claims are Azal Coffee franchisees waiving related to the transfer or assignment of the Azal Coffee Franchise Agreement?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- Release. As a condition to our consent to your transfer to the Buyer, you release and forever discharge us and our representatives, owners, employees, officers, agents and assigns from all liability, right, claim, debt and cause of action whatsoever, known or unknown, suspected or unsuspected, which you ever had, now have or may have at any time based on any agreement entered into between the parties on or before the date of this Agreement or based on any act or omission occurring on or before the date of this Agreement; provided, that nothing contained in this Section will affect your rights and obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, as a condition for the franchisor's consent to a transfer of the franchise, the franchisee must release Azal Coffee from all liabilities, rights, claims, debts, and causes of action. This waiver applies to anything known or unknown, suspected or unsuspected, that the franchisee ever had, currently has, or may have in the future.
This release covers any agreement entered into between the franchisee and Azal Coffee on or before the date of the transfer agreement, as well as any act or omission occurring on or before that date. However, the release does not affect the franchisee's rights and obligations under the transfer agreement itself.
In essence, when transferring their Azal Coffee franchise, franchisees must provide a comprehensive release of claims against the franchisor to secure the franchisor's approval for the transfer. This is a significant consideration for any franchisee contemplating a sale, as it means giving up any potential legal recourse against Azal Coffee, except those rights specifically retained under the transfer agreement.