Does the Azal Coffee addendum modify the original franchise agreement?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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EXHIBIT D-1
ADDENDUM TO FRANCHISE AGREEMENT-TRANSFER
ADDENDUM TO FRANCHISE AGREEMENT-TRANSFER
| THIS ADDENDUM is made the day of, 20, and modifies a |
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| Franchise Agreement of the same date (the "Franchise Agreement") entered into by Durar Investment, LLC, a Michigan limited liability company, ("Franchisor") and |
| , a(" Franchisee "). In this |
| , a |
| A. Introduction . You entered into an agreement ("Purchase Agreement") for the |
| purchase of the Azal Coffee located at ("Store") from the current owner of the Store (the "Seller"). We and you |
| desire to amend the Franchise Agreement to reflect the fact that you are acquiring an open and |
| operating Store by transfer from one of our existing franchisees. All capitalized terms not otherwise |
| defined in this Addendum will have the same meaning as in the Franchise Agreement. |
| B. Contingency ; Date of Effectiveness of Franchise Agreement . The rights and |
| obligations of the parties under the Franchise Agreement are contingent on: (1) your completion of |
| our initial training program; and (2) the closing of the transaction under the Purchase Agreement and the transfer of possession and ownership of the Store to you. If these contingencies are not |
| met by, 20, we may, at our option, terminate the Franchise Agreement. If |
| we terminate the Franchise Agreement as provided in this Section, we will have the right to retain |
| the transfer fee paid by you (or the Seller) and otherwise the parties will have no further rights or |
| obligations to each other under the Franchise Agreement; provided that, the confidentiality and |
| non-competition provisions of the Franchise Agreement will survive the termination. If these |
| contingencies are met by the date specified above in this Section, then the Franchise Agreement |
| will become effective on the date that you receive possession and ownership of the Store (the "Effective Date"). |
| Ellective Date ). |
| C. Refurbishing of Franchise Location. You must complete the refurbishing, |
| updating, upgrading, construction and/or improvement of the Franchise Location and the |
| equipment, fixtures and signs at the Franchise Location as specified below. These actions must |
| be completed within 90 days of the date of the Effective Date of this Addendum. |
| D. Initial Franchise Fee; Transfer Fee . You are not required to pay the initial |
| D. Initial Franchise Fee; Transfer Fee . You are not required to pay the initial franchise fee specified in Section 4.1 of the Franchise Agreement. In lieu of the initial franchise fee, |
| you (or the Seller) must pay a transfer fee in the amount of $ The transfer fee is |
| payable on or before the signing of this Addendum. |
| E. Services Provided to You . Section 5 of the Franchise Agreement is amended as |
| follows: (1) Section 5.5 is deleted. |
| (1) Section 5.5 is deleted. |
| (2) The first sentence of Section 5.8 is deleted. |
| F. Location Approval and Development. Except as provided in Section C of this |
| Addendum, we acknowledge that, for purposes of Sections 6.1 and 6.4 of the Franchise |
Agreement, the Franchise Location is approved by us and is currently developed in accordance with our specifications.
- G. Date of Opening. For purposes of Section 6.8 of the Franchise Agreement, you must begin operation of the Franchise Business on the effective date of the transfer.
- H. Legal Effect.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to the 2024 Azal Coffee Franchise Disclosure Document, the addendum does modify the original franchise agreement. The document states that the addendum is made to modify a Franchise Agreement of the same date, entered into by Durar Investment, LLC, the franchisor, and the franchisee.
The purpose of the addendum is to reflect the fact that the franchisee is acquiring an open and operating Azal Coffee store by transfer from one of the existing franchisees. All capitalized terms not otherwise defined in this Addendum will have the same meaning as in the Franchise Agreement.
The addendum outlines several key modifications to the original agreement, including contingencies related to the completion of initial training and the closing of the purchase agreement. It also addresses the refurbishing requirements for the franchise location, specifying that updates and improvements must be completed within 90 days of the addendum's effective date. Furthermore, the addendum modifies the initial franchise and transfer fees, and it amends certain services provided to the franchisee, such as deleting specific sections of the original agreement.