Who is considered the 'Franchisee' in the context of this addendum for Azal Coffee?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| THIS ADDENDUM is made the day of, 20, and modifies a |
|---|
| Franchise Agreement of the same date (the "Franchise Agreement") entered into by Durar Investment, LLC, a Michigan limited liability company, ("Franchisor") and |
| , a(" Franchisee "). In this |
| , a |
| A. Introduction . You entered into an agreement ("Purchase Agreement") for the |
| purchase of the Azal Coffee located at ("Store") from the current owner of the Store (the "Seller"). We and you |
| desire to amend the Franchise Agreement to reflect the fact that you are acquiring an open and |
| operating Store by transfer from one of our existing franchisees. All capitalized terms not otherwise |
| defined in this Addendum will have the same meaning as in the Franchise Agreement. |
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the 'Franchisee' is identified as the party entering into a Franchise Agreement with Durar Investment, LLC ('Franchisor'). This definition is clarified within the context of an addendum that modifies the original Franchise Agreement. The addendum is designed to reflect the scenario where a new franchisee is acquiring an already operational Azal Coffee store from a previous owner.
Specifically, the addendum addresses the transfer of an existing Azal Coffee location from a seller to a new franchisee. This involves amending the original Franchise Agreement to account for the acquisition of an open store. The document outlines the obligations and rights of both the franchisor and the franchisee during this transfer process. The franchisee, in this context, is the individual or entity purchasing the Azal Coffee store and assuming the responsibilities and privileges outlined in the Franchise Agreement, as modified by the addendum.
Furthermore, the document specifies that if the franchisee is an entity, each of its owners must sign an acknowledgement, reinforcing the individual accountability of those involved in the franchise operation. This ensures that all responsible parties are aware of and agree to the terms and conditions of the franchise agreement. The addendum also details certain fees and services that are adjusted or waived in light of the store's transfer, such as the initial franchise fee, which is replaced by a transfer fee.