Under what circumstances can Azal Coffee purchase insurance on behalf of the franchisee?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We will have the right to engage a vendor to consult with and advise Azal Coffee franchisees on compliance with the PCI Requirements and Information Security Standards and to require you to pay a portion of the cost of the vendor's services as determined under our policies and procedures or to directly engage the vendor for these purposes. Also, we have the right to acquire a cyber insurance policy for the Azal Coffee franchise system and to require you to pay a portion of the cost of the cyber insurance policy as determined under our policies and procedures. We will have the
right to collect your share of the costs of the vendor and/or cyber insurance policy on a periodic basis in the manner provided in Section 4.13 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee has the right to acquire a cyber insurance policy for the Azal Coffee franchise system. If Azal Coffee obtains this cyber insurance, they can require franchisees to pay a portion of the cost, as determined by Azal Coffee's policies and procedures.
Azal Coffee also has the right to engage a vendor to consult with and advise Azal Coffee franchisees on compliance with PCI Requirements and Information Security Standards. Azal Coffee can require franchisees to pay a portion of the cost of the vendor's services as determined under their policies and procedures or to directly engage the vendor for these purposes.
Azal Coffee retains the right to collect the franchisee's share of the costs for both the vendor and/or cyber insurance policy. This collection will occur on a periodic basis, as outlined in Section 4.13 of the Franchise Agreement. This means that franchisees may be obligated to contribute to the costs of cyber insurance and compliance services chosen by Azal Coffee to protect the entire franchise system.