Is an Azal Coffee franchisee allowed to relocate their franchise without approval from the franchisor?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You must operate your Store only from a specific location, which will be designated in Item 1 on Appendix A to the Franchise Agreement.
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 are not allowed to relocate their franchise without prior approval from Azal Coffee. The specific location of the store will be outlined in Item 1 of Appendix A to the Franchise Agreement.
However, Azal Coffee will consider a relocation request if the current lease expires or terminates without fault of the franchisee, or if the location becomes unusable due to unforeseen circumstances like condemnation or destruction. The franchisee can also request relocation for other reasonable business reasons.
Azal Coffee's approval of a new location depends on its viability and the franchisee's submission of a lease for review, as detailed in Section 6.2 of the Franchise Agreement. Azal Coffee states that it will not unreasonably withhold consent if these conditions are met. The factors considered for a new location are the same as those for the initial location. Azal Coffee may deny the relocation if the new location is outside the franchisee's protected area or if it believes the new location will encroach on another store's location. If the Franchise Location becomes unusable through no fault of the franchisee 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.