When during the initial term of the Franchise Agreement is an Azal Coffee franchisee required to renovate and modernize the Franchise Location?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
n thirty (30) days after receipt of the notice and diligently proceed to complete the specified action.
In addition to regular maintenance obligations, you must renovate and modernize the Franchise Location, premises, equipment, furniture, fixtures, signs, Franchise Trade Dress, and other property of the Franchise Business on our request once during the initial term of the Franchise Agreement at any time after the end of the 5th year of the initial term of the Franchise Agreement to conform with our specifications for the then current image of Stores using the Franchise Marks; provided, however, that the cost of each renovation and modernization will not exceed Seventy Five Thousand Dollars ($75,000). You must initiate the specified action within thirty (30) days after receipt of the notice and diligently proceed to complete the specified action.
If you fail to initiate any required repairs or maintenance or the required renovations and modernizations within thirty (30) days after receipt of written notice from us describing the specific repairs or alterations that are required or if you fail to diligently proceed to complete the specific repairs or alterations, then we, without being guilty in any manner of trespass, fault, or negligence, and without prejudice to any of the other remedies we have, may have the repairs or alterations completed, at your expense, to maintain the Franchise Business in accordance with our required standards. If this occurs, you must immediately reimburse us for all costs we incurred to make the repairs or alterations. You must indemnify and hold us, our franchisees, and affiliates harmless from
all fines, suits, proceedings, claims, demands, damages, liabilities, or costs, including, without limitation, actual attorneys' fees, arising out of any action or proceeding of any kind or nature that arises or grows out of or is in any way connected to the construction, renovation, or operation by you of the Franchise Business.
You must not make any material alterations to the leasehold improvements or appearance of the Franchise Location and must not make any material alterations to the equipment, furniture, fixtures, signs, Franchise Trade Dress, or other property of the Franchise Business without our prior written approval. We agree not to unreasonably withhold approval provided that the alteration
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are required to renovate and modernize their franchise location once during the initial term of the Franchise Agreement. This renovation must occur after the end of the 5th year of the initial term. The renovation should conform to Azal Coffee's specifications for the current image of stores using the franchise marks.
The cost of this renovation and modernization is capped at $75,000. Franchisees must begin the renovation within 30 days of receiving notice from Azal Coffee and diligently work to complete it.
If a franchisee fails to start the repairs, maintenance, renovations, or modernizations within 30 days of receiving written notice, or if they do not diligently proceed to complete the work, Azal Coffee has the right to complete the work at the franchisee's expense. The franchisee is then required to immediately reimburse Azal Coffee for all costs incurred. Additionally, the franchisee must indemnify Azal Coffee, its franchisees, and affiliates from any liabilities arising from the construction, renovation, or operation of the franchise business.
Franchisees are not allowed to make any significant changes to the leasehold improvements or the appearance of the franchise location, nor can they make material alterations to the equipment, furniture, fixtures, signs, or trade dress without prior written approval from Azal Coffee. However, Azal Coffee agrees not to unreasonably withhold approval, provided the alterations align with the image of the franchise system and are not prohibited by the lease or by law.