What happens if the contingencies are not met by the specified date for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
B. Contingency ; Date of Effectiveness of Franchise Agreement . The rights and obligations of the parties under the Franchise Agreement are contingent on: (1) your completion of our initial training program; and (2) the closing of the transaction under the Purchase Agreement and the transfer of possession and ownership of the Store to you. If these contingencies are not met by, 20, we may, at our option, terminate the Franchise Agreement. If we terminate the Franchise Agreement as provided in this Section, we will have the right to retain the transfer fee paid by you (or the Seller) and otherwise the parties will have no further rights or obligations to each other under the Franchise Agreement; provided that, the confidentiality and non-competition provisions of the Franchise Agreement will survive the termination. If these contingencies are met by the date specified above in this Section, then the Franchise Agreement will become effective on the date that you receive possession and ownership of the Store (the "Effective Date").
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the rights and obligations under the Franchise Agreement are contingent upon two conditions: the completion of the initial training program and the closing of the transaction under the Purchase Agreement, including the transfer of possession and ownership of the store.
If these contingencies are not met by the date specified in the agreement, Azal Coffee has the option to terminate the Franchise Agreement. Should Azal Coffee choose to terminate the agreement, they have the right to retain the transfer fee that was paid by the franchisee or the seller.
Following termination, neither party will have further rights or obligations to each other under the Franchise Agreement. However, the confidentiality and non-competition provisions of the Franchise Agreement will remain in effect even after termination. If the contingencies are met by the specified date, the Franchise Agreement becomes effective on the date the franchisee receives possession and ownership of the store.