After termination of an Azal Coffee franchise, can the franchisor request assignment of telephone numbers and electronic media from the franchisee?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
If this Agreement expires or terminates for any reason (including termination on a transfer), your rights to use the Intellectual Property and the Franchise Systems and all other rights associated with being an authorized Azal Coffee franchisee will cease and you must do the following:
- (d) You must immediately and permanently cease to use all telephone and fax numbers, email addresses, website addresses, domain names and other electronic media that have been used in the Franchise Business (the "Telephone Numbers" and "Electronic Media") and if requested by us, must assign some or all of these Telephone Numbers and Electronic Media to us. You acknowledge that as between you and us, we have the sole right to all Telephone Numbers and Electronic Media used in the Franchise Business and all written and online directory listings associated with the Franchise Business. You authorize us, and appoint us and any of our officers as your attorney-in-fact, to direct the applicable service providers and all listing agencies to transfer those items to us or our agent or assignee if you fail or refuse to do so. You authorize the applicable service providers and all listing agencies to accept the direction in this Agreement as conclusive evidence of our exclusive rights in the Telephone Numbers and Electronic Media and directory listings and our authority to direct their transfer.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, upon termination of the Franchise Agreement, Azal Coffee can request the assignment of telephone numbers and electronic media used in the Franchise Business. The franchisee must cease using all telephone and fax numbers, email addresses, website addresses, domain names, and other electronic media. If requested by Azal Coffee, the franchisee must assign some or all of these to them.
Azal Coffee retains the sole right to all Telephone Numbers and Electronic Media used in the Franchise Business, including all written and online directory listings. The franchisee authorizes Azal Coffee, or any of its officers as their attorney-in-fact, to direct service providers and listing agencies to transfer these items if the franchisee fails or refuses to do so. The service providers and listing agencies are authorized to accept the direction in the Franchise Agreement as conclusive evidence of Azal Coffee's exclusive rights and authority to direct the transfer.
This means that upon termination, an Azal Coffee franchisee loses the right to use any phone numbers, websites, or other electronic media associated with the business and may be required to transfer them to Azal Coffee. This is a fairly standard practice in franchising, as it allows the franchisor to maintain control over its brand and customer communications. A prospective franchisee should be aware of this obligation and factor it into their business planning, particularly when considering the potential impact on customer relationships and marketing efforts after the franchise agreement ends.