Can Azal Coffee own the location of my franchise and lease it to me?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
6.1 of Franchise Agreement).
We do not select the site for your franchise. We may or may not own the location of your franchise and lease it to you. You will generally lease your Franchise Location from an unrelated third party or potentially from us. You are responsible for the selection of the site of your franchise. However, we may assist you and may recommend the site for your Store. We must also approve the site for your Store. The factors that we consider when we recommend or approve a site include the surrounding population density, income levels, vehicle traffic counts, pedestrian traffic counts, visibility, ingress and egress, space dimensions, parking availability, signage restrictions, use restrictions, and economic terms. We may use a third party to research the market prior to approving the site which would be paid by the franchisee. Although we may provide assistance in finding your location, it is your sole responsibility to find a suitable location for your Store and to evaluate the commercial value of the location for operation of your franchise. Our location assistance, recommendations and/or our approval of your location do not constitute a representation or guaranty of the commercial value, profitability or success of your location or your business.
If we cannot agree on a site and you have not obtained a site for your Franchise Business within 3 months of the date of the Franchise Agreement, we may terminate the Franchise Agreement. However, if you anticipate that you will not obtain a site within 3 months after the date of the Franchise Agreement, you may obtain a 3-month extension of the deadline. In order to obtain the extension, you must, no later than 30 days before the end of the 3-month period: (a) notify us in writing that you intend to extend the deadline; and (b) pay us a nonrefundable fee of $5,000 for the extension. You may not obtain more than one 3-mon
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee may or may not own the location of your franchise and lease it to you. The FDD states that franchisees will generally lease their franchise location from an unrelated third party or potentially from Azal Coffee.
The franchisee is responsible for selecting the site for their franchise. However, Azal Coffee may assist and recommend a site for the store. Azal Coffee must also approve the site for the store. The factors that Azal Coffee considers when recommending or approving a site include the surrounding population density, income levels, vehicle traffic counts, pedestrian traffic counts, visibility, ingress and egress, space dimensions, parking availability, signage restrictions, use restrictions, and economic terms. Azal Coffee may use a third party to research the market prior to approving the site, which would be paid for by the franchisee.
Even though Azal Coffee may provide assistance in finding a location, it is the franchisee's sole responsibility to find a suitable location for their store and to evaluate the commercial value of the location for the operation of their franchise. Azal Coffee states that its location assistance, recommendations, and/or approval of the location do not constitute a representation or guarantee of the commercial value, profitability, or success of the location or the business.
If Azal Coffee and the franchisee cannot agree on a site and the franchisee has not obtained a site for their Azal Coffee franchise business within 3 months of the date of the Franchise Agreement, Azal Coffee may terminate the Franchise Agreement. However, the franchisee can obtain a one-time 3-month extension of the deadline by notifying Azal Coffee in writing no later than 30 days before the end of the 3-month period and paying a nonrefundable fee of $5,000 for the extension.