What agreement does the Franchisee make if they purchase the real estate for their Azal Coffee franchise?

According to Azal Coffee's 2024 Franchise Disclosure Document, if a franchisee purchases the real estate for their Azal Coffee franchise, they must execute the Real Estate Option to Purchase agreement. This agreement must be in the form prescribed by Azal Coffee at that time.

This stipulation ensures that Azal Coffee maintains some control over the real estate, even if the franchisee owns it. The specific terms of the Real Estate Option to Purchase are not detailed in this excerpt, but it would likely cover aspects such as the franchisor's right of first refusal if the franchisee decides to sell the property, ensuring the location continues to operate as an Azal Coffee, or maintaining the brand's standards.

Prospective Azal Coffee franchisees should carefully review the Real Estate Option to Purchase agreement to understand their obligations and the franchisor's rights regarding the property. It is important to understand the implications of this agreement before purchasing the real estate, as it could affect the franchisee's ability to sell or transfer the property freely in the future.