Does Azal Coffee evaluate the commercial reasonableness of my lease for the Franchise Location?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Review the lease for your Franchise Location for approval. Although we have the right to review and comment on your lease for the Franchise Location, we will not evaluate or be responsible for the commercial reasonableness or suitability of the lease. You must evaluate and be solely responsible for the commercial reasonableness and suitability of your lease. If you lease the Franchise Location, you and the landlord must sign our standard Lease Addendum and you must sign our Collateral Assignment of Lease before you open (Section 6.2 and Appendices G and H of the Franchise Agreement).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, while they review the lease for your franchise location, they do not evaluate its commercial reasonableness or suitability. The FDD states that Azal Coffee has the right to review and comment on your lease, but the responsibility for determining if the lease terms are commercially reasonable and suitable rests solely with you, the franchisee.
This means that as a prospective Azal Coffee franchisee, you must independently assess whether the lease terms, including rent, duration, and other conditions, are appropriate for your business. It is crucial to conduct thorough due diligence, potentially with the help of a real estate professional or legal advisor, to ensure the lease aligns with your financial projections and business plan.
Before opening your Azal Coffee franchise, you and the landlord must sign Azal Coffee's standard Lease Addendum, and you must sign a Collateral Assignment of Lease. These documents are further detailed in Section 6.2 and Appendices G and H of the Franchise Agreement.