Is an Azal Coffee franchisee required to renovate and modernize their Franchise Location?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
n thirty (30) days after receipt of the notice and diligently proceed to complete the specified action.
In addition to regular maintenance obligations, you must renovate and modernize the Franchise Location, premises, equipment, furniture, fixtures, signs, Franchise Trade Dress, and other property of the Franchise Business on our request once during the initial term of the Franchise Agreement at any time after the end of the 5th year of the initial term of the Franchise Agreement to conform with our specifications for the then current image of Stores using the Franchise Marks; provided, however, that the cost of each renovation and modernization will not exceed Seventy Five Thousand Dollars ($75,000). You must initiate the specified action within thirty (30) days after receipt of the notice and diligently proceed to complete the specified action.
If you fail to initiate any required repairs or maintenance or the required renovations and modernizations within thirty (30) days after receipt of written notice from us describing the specific repairs or alterations that are required or if you fail to diligently proceed to complete the specific repairs or alterations, then we, without being guilty in any manner of trespass, fault, or negligence, and without prejudice to any of the other remedies we have, may have the repairs or alterations completed, at your expense, to maintain the Franchise Business in accordance with our required standards. If this occurs, you must immediately reimburse us for all costs we incurred to make the repairs or alterations. You must indemnify and hold us, our franchisees, and affiliates harmless from
all fines, suits, proceedings, claims, demands, damages, liabilities, or costs, including, without limitation, actual attorneys' fees, arising out of any action or proceeding of any kind or nature that arises or grows out of or is in any way connected to the construction, renovation, or operation by you of the Franchise Business.
You must not make any material alterations to the leasehold improvements or appearance of the Franchise Location and must not make any material alterations to the equipment, furniture, fixtures, signs, Franchise Trade Dress, or other property of the Franchise Business without our prior written approval. We agree not to unreasonably withhold approval provided that the alteration
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are required to renovate and modernize their franchise location. During the initial term of the Franchise Agreement, Azal Coffee may request a renovation and modernization of the premises, equipment, furniture, fixtures, signs, Franchise Trade Dress, and other property of the Franchise Business. This request can occur any time after the end of the 5th year of the initial term.
The purpose of this renovation is to conform to Azal Coffee's specifications for the then-current image of Stores using the Franchise Marks. The FDD states that the cost of each renovation and modernization will not exceed $75,000. Franchisees must start the specified action within 30 days after receiving notice and diligently proceed to complete it.
If a franchisee fails to initiate the required renovations or modernizations within 30 days of receiving written notice from Azal Coffee, or if they fail to diligently complete the repairs, Azal Coffee has the right to complete the repairs or alterations at the franchisee's expense. The franchisee must then immediately reimburse Azal Coffee for all costs incurred. Additionally, franchisees must not make any material alterations to the leasehold improvements or appearance of the Franchise Location without Azal Coffee's prior written approval, which Azal Coffee agrees not to unreasonably withhold, provided the alterations align with the Franchise Systems' image and are not prohibited by the lease or by law.