Will Azal Coffee approve the area in which I select the site for my Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
ITEM 11--FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
Before Opening
Before you open your business, we will:
- Approve the area in which you will select the site for your franchise. We will also review your proposed location for approval (Section 6.1 of Franchise Agreement).
We do not select the site for your franchise. We may or may not own the location of your franchise and lease it to you. You will generally lease your Franchise Location from an unrelated third party or potentially from us. You are responsible for the selection of the site of your franchise. However, we may assist you and may recommend the site for your Store. We must also approve the site for your Store. The factors that we consider when we recommend or approve a site include the surrounding population density, income levels, vehicle traffic counts, pedestrian traffic counts, visibility, ingress and egress, space dimensions, parking availability, signage restrictions, use restrictions, and economic terms. We may use a third party to research the market prior to approving the site which would be paid by the franchisee. Although we may provide assistance in finding your location, it is your sole responsibility to find a suitable location for your Store and to evaluate the commercial value of the location for operation of your franchise. Our location assistance, recommendations and/or our approval of your location do not constitute a representation or guaranty of the commercial value, profitability or success of your location or your business.
If we cannot agree on a site and you have not obtained a site for your Franchise Business within 3 months of the date of the Franchise Agreement, we may terminate the Franchise Agreement. However, if you anticipate that you will not obtain a site within 3 months after the date of the Franchise Agreement, you may obtain a 3-month extension of the deadline. In order to obtain the extension, you must, no later than 30 days before the end of the 3-month period: (a) notify us in writing that you intend to extend the deadline; and (b) pay us a nonrefundable fee of $5,000 for the extension. You may not obtain more than one 3-month extension of this deadline.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee will approve the area in which a franchisee selects a site for their franchise. Azal Coffee will also review the proposed location for approval. However, the document states that the franchisee is responsible for the selection of the site. Azal Coffee may assist and recommend a site, but the franchisee is ultimately responsible for finding a suitable location and evaluating its commercial value.
The factors that Azal Coffee considers when recommending or approving a site include population density, income levels, vehicle and pedestrian traffic, visibility, accessibility, space dimensions, parking, signage restrictions, use restrictions, and economic terms. Azal Coffee may use a third party to research the market prior to approving the site, with the franchisee bearing the cost.
If Azal Coffee and the franchisee cannot agree on a site within 3 months of the franchise agreement date, Azal Coffee may terminate the agreement. However, the franchisee can obtain a one-time 3-month extension by notifying Azal Coffee in writing at least 30 days before the initial 3-month period ends and paying a nonrefundable fee of $5,000. It is important to note that Azal Coffee's location assistance, recommendations, or approval do not guarantee the commercial value, profitability, or success of the location or the business.