What factors does Azal Coffee consider when approving a new location for relocation?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You cannot relocate your franchise without our approval. If your lease or sublease for the Franchise Location expires or terminates without your fault or if the Franchise Location is condemned, destroyed or rendered unusable or you have other reasonable business reasons to relocate, you may request that we consent to the relocation of the Franchise Location. If the new location proposed by you is approved by us as a viable location and you have submitted a lease to us for review as provided in Section 6.2 of the Franchise Agreement, we will not unreasonably withhold consent to the relocation of the Franchise Location. The factors we consider for approving a new location are the same factors we consider for your initial location (see Item 11). We will not be required to consent to a new location if the location is outside of your Protected Area or if we believe the new location will encroach on the location of another Store. If the Franchise Location becomes unusable for the Store through no fault of yours and a substitute location is not available within a reasonable period of time, the Franchise Agreement will terminate on conclusion of operation of the Store at the Franchise Location.
Source: Item 12 — TERRITORY (FDD pages 36–38)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees cannot relocate their franchise without the franchisor's approval. Azal Coffee may consider a relocation request if the current lease expires or terminates without fault of the franchisee, or if the location is unusable due to unforeseen circumstances like condemnation or destruction. The franchisee can also request relocation for other reasonable business reasons.
When evaluating a proposed new location for relocation, Azal Coffee considers the same factors it uses for approving initial locations. These factors are detailed in Item 11 of the FDD, which a prospective franchisee should review carefully. Azal Coffee will assess the viability of the new location. The franchisor will not be required to consent to a new location if it is outside of the franchisee's protected area or if Azal Coffee believes the new location will encroach on another Azal Coffee store's location.
If the current franchise location becomes unusable through no fault of the franchisee, and a suitable substitute location is not available within a reasonable timeframe, the Franchise Agreement may be terminated upon conclusion of operations at the original location. This highlights the importance of securing a lease with terms that protect the franchisee's interests and carefully evaluating potential relocation options in case the original location becomes untenable.