Does Azal Coffee evaluate or take responsibility for the commercial reasonableness or suitability of my lease?
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 Azal Coffee has the right to review and comment on your lease for the Franchise Location, they will not evaluate or be responsible for the commercial reasonableness or suitability of the lease. The document states that it is the franchisee's sole responsibility to evaluate the commercial reasonableness and suitability of their lease.
Before opening an Azal Coffee franchise, the franchisee and the landlord must sign Azal Coffee's standard Lease Addendum, and the franchisee must sign a Collateral Assignment of Lease. These documents are referenced in Section 6.2 and Appendices G and H of the Franchise Agreement.
This means that the franchisee bears the full risk of ensuring the lease terms are favorable and appropriate for their Azal Coffee business. Prospective franchisees should seek legal and business advice when negotiating their lease to fully understand their obligations and potential risks.