Is the Franchisee required to notify Azal Coffee if they exercise an option to extend the Lease?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Landlord and Franchisee must provide written notice to Franchisor within 15 days after: (i) Franchisee exercises any option to extend the Lease; (ii) Landlord and Franchisee renew the lease; or (iii) Landlord institutes any action against Franchisee, including an eviction action.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the franchisee is required to notify Azal Coffee if they exercise an option to extend the lease. Specifically, both the landlord and the franchisee must provide written notice to Azal Coffee within 15 days after the franchisee exercises any option to extend the lease. This ensures that Azal Coffee is kept informed about the status and duration of the lease agreement for the premises.
This notification requirement is part of a broader set of obligations outlined in the Addendum to Lease, which also includes providing Azal Coffee with prior written notice of any cancellation or termination of the lease, any assignment or attempted assignment of the lease, any sublease or attempted sublease of the premises, or any modification of the lease. These provisions collectively aim to protect Azal Coffee's interests by ensuring they are aware of any changes to the lease agreement that could impact the operation of the Azal Coffee franchise.
The FDD specifies that all notices to Azal Coffee must be sent by certified or registered mail, return receipt requested, or by overnight courier, to the address listed in the document. This ensures that Azal Coffee receives formal and verifiable notification of important lease-related events. The address for Durar Investment, LLC, which is Azal Coffee, is 15010 W. Warren, Suite 113 Dearborn, Michigan 48126.
This requirement is not uncommon in franchising, as franchisors often want to maintain control and oversight over the locations where their franchises operate. By requiring notification of lease extensions, Azal Coffee can ensure that the franchisee has a secure location for the duration of the franchise agreement and can plan for the future of the franchise accordingly.