Under what circumstances can Azal Coffee bring an action in any court with jurisdiction?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
e manner specified in Section 4.13 within ten (10) days of our written notice to you.
15.8 Other Remedies.
Our exercise of any remedy as described in this Article 15 or elsewhere in this Agreement and/or enforcement of the provisions of Article 16 on termination or expiration of this Agreement will not affect or prejudice any other rights or remedies we may have for breach of this Agreement by you, whether those rights and remedies are contained in this Agreement or otherwise provided by law or equity. Our other rights and remedies may include an action for specific enforcement of this
Agreement or other injunctive relief, an action for damages caused by the breach, or termination of this Agreement.
15.9 Security.
Until all payments are made and any damages, costs, and expenses incurred or suffered by us have been paid, we shall have, and you shall be deemed to have granted, a lien against any and all of the furnishings, fixtures, and equipment, and all other assets of the Franchise Business, and your interest in the Lease and the Location.
ARTICLE 16 - EFFECT OF TERMINATION OR EXPIRATION
16.1 Your Obligations on Expiration or Termination.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the company has several avenues to pursue legal action against a franchisee. Azal Coffee can seek specific enforcement of the Franchise Agreement, which means they can ask a court to order the franchisee to fulfill their obligations under the agreement. They can also pursue injunctive relief, which is a court order that requires the franchisee to stop a particular action that violates the agreement.
Additionally, Azal Coffee can bring an action for damages to recover losses caused by a franchisee's breach of the agreement. The remedies available to Azal Coffee, whether outlined in the Franchise Agreement or provided by law or equity, are cumulative and not alternative. This means that Azal Coffee can pursue multiple remedies simultaneously rather than being limited to choosing only one.
Furthermore, until all payments are made and any damages, costs, and expenses incurred by Azal Coffee are fully paid, Azal Coffee has a lien against all furnishings, fixtures, equipment, and other assets of the franchise business, as well as the franchisee's interest in the lease and location. This provides Azal Coffee with a security interest in the franchisee's assets to ensure payment of outstanding obligations.