What agreement must an Azal Coffee franchisee sign to renew the franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
3.2 Option.
You will have the option to remain an Azal Coffee franchisee for two (2) additional periods of five (5) years if, at the beginning of the option period, all of the following conditions are fulfilled:
- (a) You are not in default under this Agreement or any other agreement with us or our affiliates and no affiliate of yours is in default under any agreement with us or our affiliates.
- (b) Within the last thirty-six (36) months we have not sent you two (2) or more notices of default of the terms of this Agreement or of any of our specifications, standards, or operating procedures (whether or not the notices related to the same or different violations and whether or not you have remedied those violations).
- (c) You provide written notice of your intent to continue as a franchisee not more than twelve (12) months and not less than six (6) months before the beginning of the option period.
- (d) You are able to maintain possession of the Franchise Location or you have been able to secure and develop, in compliance with our then applicable standards used in the granting of a franchise, suitable alternative premises within your Protected Area for your Store. Any alternative premises must be acceptable to and approved in advance by us.
- (e) You agree to take any action specified by us to make the Franchise Business comply with current appearance, Franchise Trade Dress, equipment, fixture, and signage requirements. You acknowledge that we may not uniformly impose refurbishing obligations on renewal of our franchises based on numerous factors and that we may require you to take steps to refurbish the Franchise Location that we have not required of other franchisees.
- (f) Throughout the term of this Agreement you have satisfied all material reporting requirements and all monetary obligations to us and our affiliates, suppliers, vendors, and creditors (excepting reasonable disputes that you are attempting in good faith to resolve) within the amount of time specified for satisfaction or cure of default with respect to the obligation.
- (g) You have satisfied any current training requirements for new or existing franchisees.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees have the option to renew their franchise agreement for two additional five-year periods. To exercise this option, several conditions must be met at the beginning of the option period.
First, the franchisee must not be in default under the existing agreement or any other agreement with Azal Coffee or its affiliates. Additionally, Azal Coffee must not have sent the franchisee two or more notices of default within the 36 months before the option period, regardless of whether the violations were the same or different and whether they were remedied. The franchisee must also provide written notice of their intent to renew between 6 and 12 months before the new option period begins.
Other conditions include maintaining possession of the franchise location or securing an approved alternative location within the protected area, complying with current appearance, trade dress, equipment, fixture, and signage requirements, and satisfying all material reporting and monetary obligations to Azal Coffee and its affiliates. Franchisees must also meet any current training requirements for new or existing franchisees. While the FDD outlines the conditions for renewal, it does not specify a separate renewal agreement that must be signed. Instead, fulfilling these conditions allows the franchisee to continue operating under the existing agreement's terms, as modified by any updates to standards or requirements.