What happens if the contingencies are not met by the specified date for the Azal Coffee Franchise Agreement?
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 Franchise Agreement is contingent upon two conditions: the franchisee completing the initial training program and the closing of the transaction under the Purchase Agreement, which includes 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.
However, if Azal Coffee terminates the agreement due to unmet contingencies, the parties will have no further rights or obligations to each other under the Franchise Agreement, with the exception that the confidentiality and non-competition provisions of the Franchise Agreement will remain in effect. 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.