If my current Azal Coffee franchise location is no longer suitable, what must I do to renew my franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You will have the option to remain an Azal Coffee franchisee for two (2) additional periods of five (5) years if, at the beginning of the option period, all of the following conditions are fulfilled:
- (a) You are not in default under this Agreement or any other agreement with us or our affiliates and no affiliate of yours is in default under any agreement with us or our affiliates.
- (b) Within the last thirty-six (36) months we have not sent you two (2) or more notices of default of the terms of this Agreement or of any of our specifications, standards, or operating procedures (whether or not the notices related to the same or different violations and whether or not you have remedied those violations).
- (c) You provide written notice of your intent to continue as a franchisee not more than twelve (12) months and not less than six (6) months before the beginning of the option period.
- (d) You are able to maintain possession of the Franchise Location or you have been able to secure and develop, in compliance with our then applicable standards used in the granting of a franchise, suitable alternative premises within your Protected Area for your Store. Any alternative premises must be acceptable to and approved in advance by us.
- (e) You agree to take any action specified by us to make the Franchise Business comply with current appearance, Franchise Trade Dress, equipment, fixture, and signage requirements. You acknowledge that we may not uniformly impose refurbishing obligations on renewal of our franchises based on numerous factors and that we may require you to take steps to refurbish the Franchise Location that we have not required of other franchisees.
- (f) Throughout the term of this Agreement you have satisfied all material reporting requirements and all monetary obligations to us and our affiliates, suppliers, vendors, and creditors (excepting reasonable disputes that you are attempting in good faith to resolve) within the amount of time specified for satisfaction or cure of default with respect to the obligation.
- (g) You have satisfied any current training requirements for new or existing franchisees.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, to renew your franchise for two additional five-year periods, you must meet several conditions, including maintaining possession of the franchise location or securing suitable alternative premises within your protected area. This alternative location must meet Azal Coffee's standards for granting a franchise and must be approved in advance by them.
Specifically, you must be able to either maintain possession of your current Azal Coffee location or find, secure, and develop a suitable alternative location within your protected area. This new location must comply with Azal Coffee's standards used when granting a franchise. Importantly, Azal Coffee must approve the alternative premises in advance. This means you cannot simply move to a new location without their explicit consent.
This requirement ensures that even if your initial location becomes unsuitable, you can still renew your franchise agreement if you can find an acceptable alternative. However, it places the onus on you to find and develop that alternative location, subject to Azal Coffee's approval. This condition is in addition to other standard renewal requirements, such as not being in default, providing timely notice of your intent to renew, complying with current brand standards, and meeting all financial and training obligations.
Prospective Azal Coffee franchisees should carefully consider the implications of this renewal condition. It highlights the importance of selecting a viable location initially and maintaining a good relationship with the franchisor to facilitate the approval of any potential alternative locations. Franchisees should also be prepared to invest time and resources in finding and developing a new location if their original site becomes unsuitable.