Who is the Collateral Assignment of Lease binding upon for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ny liability prior to the assignment that Franchisor agrees in writing to assume and from which Franchisor agrees to hold Franchisee harmless.
8. Miscellaneous.
- A. Use of Real Estate. Landlord hereby agrees to and acknowledges Franchisee's right to use and display Franchisor's Marks as that term is used in the Franchise Agreement, subject only to any limitations imposed by Franchisor and any local, state or federal law. Landlord agrees that it will not limit Franchisee's right to use Franchisor Trademarks. Landlord further agrees to and acknowledges that the real estate subject to the Real Estate Lease shall be used solely for the operation of an Azal Coffee. Landlord agrees to notify Franchisor in the event that Franchisee begins to use real estate in any other manner and Landlord shall consider such use as an event of default.
- B. Applicable Law. This Agreement shall be construed according to the laws of the state in which the premises are located. If any provision, or portion of a provision, of this Agreement is or shall become in conflict with any applicable law, then the applicable law shall govern and such provision or portion of a provision shall be automatically deleted and shall not be effective to the extent that it is not in accordance with applicable law.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the Collateral Assignment of Lease involves multiple parties and defines their rights and obligations. The agreement is binding upon the franchisee, the landlord, and the franchisor, Durar Investment, LLC.
The franchisee agrees to certain lease provisions as a condition of the Franchise Agreement. The landlord acknowledges the franchisee's right to use Azal Coffee's marks and agrees that the property will be used solely for the operation of an Azal Coffee. The landlord must notify the franchisor if the franchisee uses the property in any other manner, which the landlord will consider a default.
Durar Investment, LLC, as the franchisor, has the option to be assigned the lease under certain conditions, such as the termination of the Franchise Agreement, the termination of the lease, or the franchisee's abandonment of the premises. If the franchisor exercises this option, the franchisee's rights to the lease are automatically assigned to the franchisor. If the lease is terminated or expires without renewal and the franchisee and landlord enter into a new lease, the new lease is subject to the Collateral Assignment of Lease.
In the event the franchisee purchases the real estate, the franchisee agrees to execute the Real Estate Option to Purchase in the form prescribed by Azal Coffee. This ensures that the franchisor maintains certain rights and control over the location, even if the franchisee owns the property. This comprehensive agreement ensures that all parties are aware of their rights and responsibilities regarding the lease and the operation of the Azal Coffee franchise.