Who must execute a written agreement for any renewal, extension, or amendment to the Lease or the Collateral Assignment of Lease for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- C.
Entire Agreement.
This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof.
This Agreement supersedes any prior agreements, negotiations and discussions between the Parties.
This Agreement cannot be altered or amended except by an agreement in writing signed by the duly authorized representatives of the Parties.
- D.
New Real Estate Lease.
It is hereby agreed that if the Lease is terminated or expires without renewal, and the Franchisee and Landlord enter into a new lease arrangement, any such new real estate lease shall be deemed to be the Lease for purposes of this Collateral Assignment of Lease thereby making it fully applicable to the new lease.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, if the lease for the franchise location is terminated or expires without renewal, and the franchisee and landlord enter into a new lease arrangement, this new lease will be considered the Lease for the purposes of the Collateral Assignment of Lease. This makes the Collateral Assignment of Lease fully applicable to the new lease.
Furthermore, the document states that any alterations or amendments to the agreement must be in writing and signed by the duly authorized representatives of the parties involved. This implies that both the landlord and the franchisee, or their authorized representatives, must agree to and sign any written agreement for a new lease to be valid and binding under the Collateral Assignment of Lease.
This stipulation ensures that Azal Coffee maintains its rights and interests in the franchise location, even if the original lease is replaced. It also provides a level of security for the franchisor, as any new lease agreement is automatically subject to the terms of the Collateral Assignment of Lease, protecting their investment and brand standards.