Under what conditions will Azal Coffee not unreasonably withhold approval for alterations to the Franchise Location?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Whenever we have the right in this Agreement to take or to withhold an action, or to grant or decline to grant you a right to take or omit an action, we may, except as otherwise specifically provided in this Agreement, make our decision or exercise our rights based on information readily available to us and our judgment of what is in our and/or the Azal Coffee franchise system's best interests at the time our decision is made, without regard to either whether we could have made other reasonable or even arguably preferable alternative decisions or whether our decision promotes our financial or other individual interest. Examples of items that will promote or benefit the Azal Coffee franchise system include enhancing the value of the Intellectual Property, improving customer service and satisfaction, improving product quality, improving uniformity, enhancing or encouraging modernization, and improving the competitive position of the Azal Coffee franchise system.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Azal Coffee has the right to take or withhold actions related to the franchise, including granting or declining rights for a franchisee to take or omit an action. Azal Coffee may make these decisions based on readily available information and their judgment of what is in the best interests of both Azal Coffee and the franchise system. This is with the exception of instances where the Franchise Agreement specifically provides otherwise.
According to the FDD, Azal Coffee's decisions can be influenced by factors that enhance the value of their intellectual property, improve customer service and satisfaction, improve product quality, improve uniformity, encourage modernization, and improve the competitive position of the Azal Coffee franchise system. These factors are examples of items that will promote or benefit the Azal Coffee franchise system.
This means that while franchisees may seek approval for alterations, Azal Coffee retains significant discretion in making decisions. However, this discretion is expected to be exercised reasonably, focusing on the overall benefit to the franchise system. Prospective franchisees should be aware that Azal Coffee's interests and the interests of the franchise system will likely take precedence over an individual franchisee's preferences when it comes to approvals for alterations or other actions.