What is the fee for the extension to obtain a site for my Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ur 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, if a mutually agreeable site is not secured within the initial 3-month period following the Franchise Agreement, a franchisee can request a one-time extension of 3 months. To obtain this extension, the franchisee must notify Azal Coffee in writing no later than 30 days before the initial 3-month deadline. Additionally, the franchisee is required to pay a nonrefundable fee of $5,000 to Azal Coffee for this extension.
This fee is nonrefundable, meaning that even if the franchisee still fails to secure a site within the extension period or decides not to proceed with the franchise, the $5,000 will not be returned. The FDD explicitly states that only one such extension is permitted, so franchisees should carefully consider their site selection strategy and timeline.
This policy is designed to encourage franchisees to actively pursue site selection while providing a limited safety net if unforeseen delays occur. The non-refundable nature of the fee underscores the importance of thorough due diligence and realistic planning when entering into a franchise agreement with Azal Coffee.