factual

For Azal Coffee, which specific obligations outlined in the Franchise Agreement are Owners bound by, excluding the payment of money?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

onnel in accordance with our specifications.

7.3 Additional Training, Sales Programs and Meetings.

A Designated Owner (or, if specified by us, the General Manager or other management employees) must, solely at your expense, attend additional training, sales programs, and meetings reasonably specified by us, including regular periodic franchise meetings if specified by us. We will give reasonable notice of any additional specified training, sales programs, and meetings. We may require you to pay a reasonable charge for any training provided to you and/or your managers beyond the initial training program described in Section 7.1. Any fees we charge will be uniform as to all persons attending additional training at that time. We may require that you complete additional training before offering new Authorized Products from the Franchise Business.

We may require that your managers, including replacement managers in the event any previously trained manager-level employees are no longer employed at the Franchise Business, satisfactorily complete our training programs and additional training programs. We may charge reasonable fees for training managers. You are responsible for paying the wages or salaries, expenses for travel, food and lodging incurred by your employees during all training courses and programs. You agree to assist us in training other Azal Coffee franchisees; provided that, we must reimburse you for any expenses you incur in providing this assistance.

If you or your management personnel fail to attend required additional training without our consent, we may charge you liquidated damages under Section 15.7.

If you request additional assistance at any time, you will be responsible for our trainer's per diem fee and related travel costs. You must also pay wages, employment related expenses, travel, and living expenses for your employees. If we, in our sole discretion, complete the opening assistance and training and determine that your management staff needs additional training, you are responsible for the additional training costs, including wages, travel, and living expenses of our staff. If you or any member of your team fails to complete the training program to our satisfaction, in our sole and unfettered judgment, we may terminate this Agreement.

We will not be obligated to continue any specific ongoing training or advice we provide based on course of dealing or otherwise. We may discontinue or modify any ongoing training or advice at any time.

ARTICLE 8 – OPERATIONS AND SYSTEM STANDARDS

8.1 Continuing Operations and Best Efforts.

You acknowledge that the reputation and goodwill of the Franchise System is based in large part on offering high quality products and services to its customers. Accordingly, you shall provide or offer for sale or use at the Store only those menu items, products, goods, supplies, uniforms, proprietary apparel, proprietary promotional items, small wares, paper products, coffee beans, coffee products, food items, beverages, supplies, and other items, products and services that we from time to time approve (and which are not thereafter disapproved) and that comply with our Brand Standards Manual. You must at all times during the term of this Agreement keep the Franchise Business open and fully operational in compliance with the provisions of this Agreement and our specifications during the days and business hours designated by us from time to time in the Brand Standards Manual or as otherwise designated by us in writing. The Franchise Business will only be considered open and fully operational when the Franchise Business is open to the public, fully staffed, and ready and able at that time to provide all products and services offered by the Franchise Business. In addition to, or instead of our other available remedies, including termination, we may impose liquidated damages under Section 15.7 for each day the Franchise Business is not open and fully operational during the days and business hours designated by us, unless due to fire, flood, earthquake or other similar causes beyond your control and not related to your lack of funds. You must use your best efforts to promote and maximize the sales of the Franchise Business throughout the term of this Agreement. You must maintain at all times, sufficient equipment, supplies, and personnel to operate the Franchise Business at optimal capacity and efficiency.

8.2 Standards of Operation; Brand Standards Manual.

You acknowledge that every component of the Franchise Systems is important to us and to the operation of the Franchise Business. You must, at all times, operate and maintain the Franchise Business in a competent manner and in full compliance with all aspects of the Franchise Systems specified by us. In all business dealings with the public, you must be governed by the highest standards of honesty, integrity, fair dealing and ethical conduct.

You must comply with all lawful and reasonable policies and procedures specified by us in connection with the operation of the Franchise Business. These specifications may include standards, techniques and procedures for: (a) the safety, maintenance, cleanliness, sanitation, function, hours of operation, and appearance of the Franchise Business and the equipment, fixtures, furniture, décor, signs, and Trade Dress used in the Franchise Business; (b) qualifications, dress, uniforms, grooming, general appearance, and demeanor of employees; (c) the products and services required or authorized to be offered and sold by the Franchise Business; (d) type, shelf life, quality, taste, portion control, and uniformity and manner of preparation and sale of all of the

products sold by the Franchise Business: (e) methods and procedures relating to receiving and preparing customer orders; (f) catering, delivery, on-line ordering, and use of third party delivery services; (g) sales, advertising and promotional techniques and programs; (h) construction, maintenance and appearance of the Franchise Business and the Franchise Location; (i) payment, credit, accounting, and financial reporting policies and procedures; (i) use of our intranet or extranet (if established) for entering sales and other information, projecting sales, ordering supplies, entering expenses, receiving reports and other operational requirements as specified by us; (k) purchase and maintenance of equipment, fixtures, signs, and inventory; (I) insurance coverage; (m) use of standard forms and the Franchise Marks; (n) use and illumination of exterior and interior signs, displays, and similar items; (o) atmosphere of the Franchise Location, including music and lighting; (p) warranties to customers and the handling of customer complaints and customer communications; (g) identification, pursuant to our specifications, of the Franchise Business as an independently owned and operated business; (r) attendance by you and your management employees at required training programs and meetings; (s) using and honoring gift certificates, coupons and other local and national promotional programs authorized or specified by us: and (t) other details of the operation of the Franchise Business and your relationship with us. Notwithstanding the foregoing, and consistent with the goals of the Franchise System, you will be responsible for the day-to-day operation of the Franchise Business.

Source: Item 22 — CONTRACTS (FDD page 51)

What This Means (2024 FDD)

According to Azal Coffee's 2024 Franchise Disclosure Document, owners have several obligations beyond monetary payments. A Designated Owner (or General Manager) must attend additional training, sales programs, and meetings as specified by Azal Coffee. Franchisees must also assist Azal Coffee in training other franchisees, for which they will be reimbursed for expenses. Franchisees are responsible for the wages, travel, food, and lodging expenses of their employees during training.

During the term of the Franchise Agreement and for three years after its termination, franchisees are prohibited from diverting business or customers to a Competing Business, sponsoring others to operate a Competing Business, or employing individuals involved in a Competing Business. This restriction extends to shareholders, officers, directors, members, managers, partners, owners, investors, family members, and affiliates of the franchisee.

Upon termination of the Franchise Agreement, franchisees must immediately discontinue using Azal Coffee's Intellectual Property, Confidential Information, and Franchise Systems. They must also cease all advertising and return all materials containing the Intellectual Property or Confidential Information. Franchisees must also meet certain conditions to renew their franchise, including remaining compliant with all agreements, specifications, standards, and operating procedures, maintaining possession of the Franchise Location, and satisfying current training requirements.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.