Under what circumstances might Azal Coffee charge liquidated damages related to the annual convention?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
If we announce that we are conducting an annual convention, you must register for the annual convention no later than sixty (60) days before the date of the annual convention. If you timely register for the annual convention, you will be charged the applicable fee for the annual convention, which will be paid on the date specified by us. If you do not timely register for the annual convention or if you register and fail to fully attend the annual convention without our consent, we may charge you liquidated damages under Section 15.7. As used in this Section 4.12, "fully attend the annual convention" means that a representative of you (which must be a Designated Owner unless approved in advance by us) attends all portions of the annual convention, including all general sessions, a break-out session during each break-out session time slot, and the dinner/awards banquet.
4.13 Manner and Timing of Payment.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, liquidated damages may be charged if a franchisee fails to timely register and fully attend the annual convention without the franchisor's consent. The FDD specifies that franchisees must register for the annual convention at least 60 days before the event.
To "fully attend the annual convention," a designated owner (or someone approved by Azal Coffee) must attend all portions of the convention. This includes all general sessions, a break-out session during each break-out session time slot, and the dinner/awards banquet.
The liquidated damages for failing to timely register and fully attend the annual convention are $2,500. This fee is intended to cover Azal Coffee's damages resulting from the franchisee's violations, including additional administrative expenses and damages arising from loss of uniformity, quality, reputation, or goodwill in the Franchise Systems.