What factors does Azal Coffee consider when recommending or approving a site for my franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
party or potentially from us. You are responsible for the selection of the site of your franchise. However, we may assist you and may recommend the site for your Store. We must also approve the site for your Store. The factors that we consider when we recommend or approve a site include the surrounding population density, income levels, vehicle traffic counts, pedestrian traffic counts, visibility, ingress and egress, space dimensions, parking availability, signage restrictions, use restrictions, and economic terms. We may use a third party to research the market prior to approving the site which would be paid by the franchisee. Although we may provide assistance in finding your location, it is your sole responsibility to find a suitable location for your Store and to evaluate the commercial value of the location for operation of your franchise. Our location assistance, recommendations and/or our approval of your location do not constitute a representation or guaranty of the commercial value, profitability or success of your location or your business.
If we cannot agree on a site and you have not obtained a site for your Franchise Business within 3 months of the date of the Franchise Agreement, we may terminate the Franchise Agreement. However, if you anticipate that you will not obtain a site within 3 months after the date of the Franchise Agreement, you may obtain a 3-month extension of the deadline. In order to obtain the extension, you must, no later than 30 days before the end of the 3-month period: (a) notify us in writing that you intend to extend the deadline; and (b) pay us a nonrefundable fee of $5,000 for the extension. You may not obtain more than one 3-mon
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 the franchisee is responsible for selecting the site for their store, Azal Coffee may assist and recommend a site. Azal Coffee must also approve the site. Factors Azal Coffee considers when recommending or approving a site include surrounding population density, income levels, vehicle and pedestrian traffic counts, visibility, ingress and egress, space dimensions, parking availability, signage and use restrictions, and economic terms. Azal Coffee may also use a third party to research the market, with the franchisee bearing the cost.
Azal Coffee emphasizes that its location assistance, recommendations, or approval do not guarantee the commercial value, profitability, or success of the location or the business. This highlights the importance of the franchisee conducting their own due diligence and assessing the commercial viability of the chosen site.
If a mutually agreeable site cannot be found within 3 months of the Franchise Agreement date, Azal Coffee has the right to terminate the agreement. However, the franchisee can obtain a one-time 3-month extension by notifying Azal Coffee in writing at least 30 days before the initial deadline and paying a nonrefundable fee of $5,000. This extension provides additional time for site selection but comes at a significant cost if the franchisee is unable to secure a location within the initial timeframe.