Under what condition might the Protected Area for an Azal Coffee franchise be less than a 2-mile radius?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ed rights in your Protected Area.
As long as your Franchise Agreement is in effect and you are not in default, we will not open or authorize any other person to open an Azal Coffee at a location in the area that is within a 2 to 5-mile radius from the front door of the Franchise Location (the "Protected Area"). If the Franchise Location is in a densely populated area, the Protected Area may be less than a 2-mile radius. In that case, the area will be agreed to and will be described in Item 2 of Appendix A to the Franchise Agreement. Your limited rights relate to location only and do not grant you any exclusivity of marketing, customers, or delivery area. Subject to any specifications and policies for catering and delivery and limitations on catering and delivery areas we specify, all Stores may sell and deliver their products and services to any customer, even if the customer is within your Protected Area or the protected area of another franchisee. We and other franchisees are not required to pay any compensation to you for soliciting or accepting orders inside your Protected Area. We may also authorize third-party deliveries to be made inside your Protected Area.
As exceptions to your limited rights in your Protected Area, we and our affiliates may operate or authorize other persons to operate businesses under the Franchise Marks and Franchise Systems and/or to offer and sell products and services offered at Stores at the following types of locations in the Protected Area: corporate cafeterias; food trucks; ghost kitchens; institutional accounts (including grocery stores and warehouse clubs); offsite events (e.g. art fairs, fundraisers, etc.); stadiums; and locations with relatively fixed populations (e.g. airports, military bases, college campuses, hospitals and other medical facilities, indoor regional malls, certain large office buildings where a portion of the inhabitants do not leave the building for lunch and few people from outside the building come in for lunch); similar locations; and mobile locations, such as food trucks.
Limitations;
Source: Item 12 — TERRITORY (FDD pages 36–38)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the Protected Area for a franchisee is typically within a 2 to 5-mile radius from the franchise location's front door. However, this radius may be smaller than 2 miles if the franchise is situated in a densely populated area. In such instances, the specific size and boundaries of the Protected Area will be determined and mutually agreed upon, and this information will be detailed in Item 2 of Appendix A to the Franchise Agreement.
It's important to note that the rights granted within the Protected Area are limited to location only and do not provide any exclusivity regarding marketing, customers, or delivery areas. Azal Coffee franchisees should be aware that other stores, including those owned by the franchisor or other franchisees, can sell and deliver products and services to customers within their Protected Area. Furthermore, neither Azal Coffee nor other franchisees are obligated to compensate a franchisee for soliciting or accepting orders from customers within their Protected Area. Azal Coffee may also authorize third-party deliveries within a franchisee's Protected Area.
Azal Coffee and its affiliates retain the right to operate or authorize others to operate businesses under the Franchise Marks and Franchise Systems, offering and selling products and services similar to those at Azal Coffee stores within the Protected Area. These locations can include corporate cafeterias, food trucks, ghost kitchens, institutional accounts (such as grocery stores and warehouse clubs), offsite events, stadiums, locations with relatively fixed populations (such as airports, military bases, college campuses, hospitals, indoor regional malls, and large office buildings), and mobile locations like food trucks. These exceptions significantly limit the exclusivity a franchisee might expect, even within their Protected Area.