What is the initial term length of the Azal Coffee franchise agreement, assuming it is not terminated early?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
enses competitive businesses in the Protected Area.
ARTICLE 3 - TERM AND OPTION
3.1 Term.
This Agreement will begin on the date of this Agreement and continue until ten (10) years after the date that your Store opens for business unless sooner terminated as provided in this Agreement.
3.2 Option.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the initial term of the franchise agreement is 10 years. The agreement starts on the date it is signed and continues for 10 years after the store opens for business, unless it is terminated earlier as per the terms of the agreement.
After the initial 10-year term, Azal Coffee offers franchisees the option to extend their franchise agreement for two additional terms of 5 years each, giving a potential franchisee a total of 20 years to operate their franchise.
However, to qualify for these extensions, the franchisee must meet certain conditions at the beginning of each option period. The FDD does not specify what these conditions are, so a prospective franchisee should clarify these requirements with Azal Coffee before signing the agreement.