Is there a specific procedure outlined in the Azal Coffee Franchise Disclosure Document for addressing discrepancies between oral representations and the written disclosures?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
fy. You understand and acknowledge that the Franchise Business may lose money or fail.
19.2 Our Representations.
You acknowledge and agree that, except as specifically stated in this Agreement or our Franchise Disclosure Document or the attached "Acknowledgments by Franchisee," no representations or warranties, express or implied, have been made to you, either by us or anyone acting on our behalf or purporting to represent us, including the prospects for successful operations, the level of business or profits that you might reasonably expect, the desirability, profitability, or expected
traffic volume or profit of the Franchise Business. You acknowledge that all those items are dependent on variables beyond our control, including the ability, motivation and amount and quality of effort you expend. You acknowledge that we and our agents and representatives have not made and are not authorized to make any oral, written, or visual representations or projections of actual or potential sales, earnings, net or gross profits, operational costs or expenses, prospects or chances of success that are not contained in this Agreement or in our Franchise Disclosure Document.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the franchise agreement explicitly addresses the issue of oral representations that may differ from the written disclosures. It states that, except as specifically outlined in the agreement or the Franchise Disclosure Document itself, no representations or warranties, whether express or implied, have been made by Azal Coffee or anyone acting on its behalf. This includes representations regarding successful operations, potential business levels or profits, or the desirability and profitability of the franchise.
The Azal Coffee FDD emphasizes that projections of sales, earnings, profits, costs, or chances of success not contained within the agreement or the FDD are not authorized and should not be relied upon. The document makes it clear that Azal Coffee will not be bound by any allegations of representations regarding earnings, sales, profits, costs, expenses, prospects, or chances of success that are not explicitly written in the Franchise Agreement or the Franchise Disclosure Document.
This acknowledgement serves to protect Azal Coffee from potential misunderstandings or misinterpretations of verbal promises made during the franchise sales process. It also reinforces the importance of prospective franchisees conducting their own due diligence and relying on the written documentation provided. This type of clause is standard practice in franchising to ensure clarity and prevent future disputes based on claims of misleading oral statements.