What is the dependency between signing the new franchise agreement and paying the renewal fee for Azal Coffee?

According to Azal Coffee's 2024 Franchise Disclosure Document, the ability to renew the franchise agreement for additional terms is contingent upon fulfilling certain conditions, including satisfying all monetary obligations to Azal Coffee and its affiliates. Specifically, this encompasses the timely payment of renewal fees. Therefore, to be eligible for renewal, an Azal Coffee franchisee must ensure that all payments, including renewal fees, are current and up-to-date.

To exercise the option to renew their Azal Coffee franchise agreement, a franchisee must not be in default under the existing agreement or any other agreement with Azal Coffee or its affiliates. Furthermore, they must provide written notice of their intent to renew within a specified timeframe, typically not more than twelve months and not less than six months before the beginning of the option period. The franchisee must also be able to maintain possession of the franchise location or secure an alternative location that meets Azal Coffee's standards.

Moreover, the franchisee must agree to take any actions necessary to ensure the franchise business complies with Azal Coffee's current appearance, trade dress, equipment, fixture, and signage requirements. Satisfying all material reporting requirements and monetary obligations, including the renewal fee, is crucial. Any failure to meet these conditions, including the timely payment of the renewal fee, could result in the franchisee being ineligible for renewal, thus terminating their right to operate an Azal Coffee franchise.