When is an Azal Coffee franchisee required to sign Appendix H, 'Collateral Assignment of Lease'?

Based on the 2024 Azal Coffee Franchise Disclosure Document, if the Lease is terminated or expires without renewal, and the Franchisee and Landlord enter into a new lease arrangement, any such new real estate lease shall be deemed to be the Lease for purposes of this Collateral Assignment of Lease thereby making it fully applicable to the new lease.

This means that if an Azal Coffee franchisee's original lease ends and they negotiate a new lease with the landlord, that new lease automatically falls under the terms of the Collateral Assignment of Lease. This ensures that the franchisor's rights regarding the lease continue uninterrupted, even with a new lease agreement.

This provision protects Azal Coffee's interests by maintaining control over the location of the franchise. It prevents a franchisee and landlord from circumventing the original agreement through a new lease that doesn't acknowledge the franchisor's rights. Franchisees should understand that any new lease they negotiate will still be subject to the franchisor's control and assignment rights.