What is the deadline for the estate to designate an acceptable General Manager for the Azal Coffee Franchise Business after the franchisee's death or incapacity?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
If you or your last surviving Designated Owner (if you are an entity) dies or becomes incapacitated, your or the owner's rights under this Agreement will pass to the estate, heirs, devisees or legal representatives of you or the Designated Owner (collectively referred to in this Agreement as the "estate"). The estate may continue operation of the Franchise Business if: (a) the Franchise Business is not closed for more than seven (7) business days and is operated in accordance with applicable law; (b) the estate provides a qualified individual acceptable to us to act as General Manager for the Franchise Business on a full time basis; (c) the General Manager attends and successfully completes our training program at the estate's expense; and (d) the General Manager assumes full time operation of the Franchise Business within ninety (90) days of the date you or the Designated Owner dies or becomes incapacitated. If the estate fails to designate an acceptable General Manager or the designated General Manager fails to attend and satisfactorily complete the training program and to assume the full-time operation of the Franchise Business within ninety (90) days of the death or incapacity, then the estate must sell the estate's interest in the Franchise Business or in this Agreement within one hundred eighty (180) days of the date of death or incapacity. Any sale is subject to our right of first refusal under Section 14.2 and subject to our consent under Section 14.3
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, if a franchisee or their last surviving Designated Owner dies or becomes incapacitated, their rights under the Franchise Agreement will pass to their estate. The estate can continue operating the Azal Coffee franchise if several conditions are met.
One of these conditions is that the estate must provide a qualified individual acceptable to Azal Coffee to act as a full-time General Manager for the franchise. The estate has 90 days from the date of death or incapacity to designate an acceptable General Manager.
Furthermore, the designated General Manager must attend and successfully complete Azal Coffee's training program at the estate's expense. They must also assume full-time operation of the franchise within that same 90-day period. If the estate fails to meet these requirements, they must sell their interest in the Azal Coffee franchise within 180 days of the death or incapacity, subject to Azal Coffee's right of first refusal and consent.