What is the Azal Coffee franchisee's obligation regarding lease submission when requesting relocation approval?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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, a franchisee seeking to relocate their franchise must submit a lease for review as part of the relocation approval process. Specifically, if the franchisee's current lease expires or terminates without their fault, or if the location becomes unusable, or if there are other reasonable business reasons to relocate, the franchisee can request relocation approval from Azal Coffee.
Azal Coffee will assess the viability of the new proposed location using the same criteria as for the initial location. A critical step in this process is the franchisee's submission of the new lease to Azal Coffee for review, as outlined in Section 6.2 of the Franchise Agreement. If the new location is deemed suitable and the lease is submitted, Azal Coffee will not unreasonably withhold consent for the relocation.
This requirement ensures that Azal Coffee maintains control over the suitability of franchise locations and that the lease terms are acceptable. It protects Azal Coffee's brand and operational standards. For a prospective franchisee, this means that securing a viable new location and negotiating a lease that meets Azal Coffee's approval are crucial steps in the relocation process. Failure to submit the lease or secure approval can delay or prevent the relocation.