factual

What article of the Franchise Agreement is being amended by this addendum for Azal Coffee?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

Amendment.

| DURAR INVESTMENT, LLC | | |-----------------------|--------------| | | FRANCHISEE | | | | | By: | By: | | Its: | Its: |

ADDENDUM TO DURAR INVESTMENT, LLC FRANCHISE AGREEMENT FOR USE IN THE STATE OF RHODE ISLAND

| THIS ADDENDUM is made this | day of, 20, and modifies a | |-------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------| | Franchise Agreement of the same date entered | d into by DURAR INVESTMENT, LLC, a Michigan | | limited liability company ("Franchisor") and | | | (" Franchisee "). | | | | | | In recognition of the requirements of the 28.1-1 through 19-28.1-34, the parties agree as | e Rhode Island Franchise Investment Act, §§ 19- s follows: | | 1. Applicable Law . Article 18 of the following: | he Franchise Agreement is amended by adding | | provision in a franchise agreement restricting | Franchise Investment Act provides that "A ng jurisdiction or venue to a forum outside this ws of another state is void with respect to a " | | with respect to such provision, that the jurisdict | This Amendment is effective only to the extent, ional requirements of the Rhode Island Franchise -34, are met independently without reference to | | DURAR INVESTMENT, LLC | FRANCHISEE | | Ву: | | | lto. | Ву: | | Its: | lts: |

ADDENDUM TO DURAR INVESTMENT, LLC FRANCHISE AGREEMENT FOR USE IN THE STATE OF WASHINGTON

State Cover Page Notice under Michigan Franchise Inv. Law F List of Azal Coffee Franchisees
A List of State Administrators and List of Agents for Service of Process G List of Franchisees That Have Left the System
B Franchise Agreement H Financial Statements
C Renewal Addendum I State Specific Disclosures and Addenda
D1 Transfer Addendum J State Effective Dates
D2 Franchise Termination and Release Agreement K Receipt (2 Copies)
E Confidentiality/Non-Competition Agreement In recognition of the requirements of the Washington Franchise Investment Protection Act, the parties agree as follows:
  1. Washington Law. The Franchise Agreement is amended by adding the following paragraphs:

In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.

RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.

In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.

A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.

Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation).

Source: Item 23 — RECEIPTS (FDD pages 51–204)

What This Means (2024 FDD)

According to Azal Coffee's 2024 Franchise Disclosure Document, the addendum modifies specific articles within the Franchise Agreement to comply with state laws. For New York, Sections 3.2(h) and 14.3(d) are amended, and Section 18.3 regarding Applicable Law is also modified. For Rhode Island, Article 18 of the Franchise Agreement is amended. These modifications ensure that the franchise agreement does not violate the franchisees' rights under the General Business Law of New York and the Rhode Island Franchise Investment Act.

These amendments are crucial for prospective Azal Coffee franchisees as they protect their rights and ensure compliance with local laws. The addenda explicitly state that the choice of law provisions in the original franchise agreement will not be considered a waiver of the franchisee's rights under New York's General Business Law or the Rhode Island Franchise Investment Act. This means that franchisees in these states retain the legal protections afforded to them, regardless of what the main franchise agreement stipulates.

For franchisees, this translates to a more secure and legally sound business relationship with Azal Coffee. The franchisor acknowledges and agrees to abide by state-specific regulations, preventing potential conflicts or disputes arising from non-compliance. It also provides clarity on which laws govern the agreement, reducing ambiguity and ensuring that franchisees understand their rights and obligations within their specific state. Prospective franchisees should carefully review these addenda to understand how their rights are protected under the franchise agreement within their state.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.