What is the document being modified by 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. |
| B. Contingency ; Date of Effectiveness of Franchise Agreement . The rights and |
| obligations of the parties under the Franchise Agreement are contingent on: (1) your completion of |
| our initial training program; and (2) the closing of the transaction under the Purchase Agreement and the transfer of possession and ownership of the Store to you. If these contingencies are not |
| met by, 20, we may, at our option, terminate the Franchise Agreement. If |
| we terminate the Franchise Agreement as provided in this Section, we will have the right to retain |
| the transfer fee paid by you (or the Seller) and otherwise the parties will have no further rights or |
| obligations to each other under the Franchise Agreement; provided that, the confidentiality and |
| non-competition provisions of the Franchise Agreement will survive the termination. If these |
| contingencies are met by the date specified above in this Section, then the Franchise Agreement |
| will become effective on the date that you receive possession and ownership of the Store (the "Effective Date"). |
| Ellective Date ). |
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the addendum modifies a Franchise Agreement. The addendum is made on a specific date in 20XX and modifies a Franchise Agreement of the same date. This agreement is between Durar Investment, LLC, identified as the Franchisor, and the franchisee.
The purpose of this addendum is to reflect the franchisee's acquisition of an already operating Azal Coffee store from a current owner through a Purchase Agreement. The addendum clarifies that all capitalized terms not defined within it will carry the same meaning as defined in the original Franchise Agreement.
Furthermore, the addendum outlines specific conditions that must be met for the Franchise Agreement to become effective. These conditions include the completion of the initial training program and the closing of the transaction under the Purchase Agreement, which involves the transfer of possession and ownership of the store to the franchisee. If these conditions are not met by a specified date in 20XX, Azal Coffee has the option to terminate the Franchise Agreement, retaining the transfer fee paid. However, the confidentiality and non-competition provisions of the Franchise Agreement will remain in effect even if terminated. If the conditions are met, the Franchise Agreement becomes effective on the date the franchisee receives possession and ownership of the store.