How many Azal Coffee franchised outlets experienced non-renewal in 2023?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
le No. 3 Status of Franchised Outlets For Years 2021 to 2023**
| State | Year | Outlets at Start of Year | Outlets Opened | Termi na tions | Non Renewals | Re-acquired by Franchisor | Ceased Opera tions Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
| Michigan | 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Totals | 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
**Table No.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 48–50)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, there were no non-renewals of franchised outlets in 2023. Table No. 3, which details the status of franchised outlets from 2021 to 2023, indicates that the number of non-renewals was zero for 2023. This suggests that all franchise agreements that were up for renewal in 2023 were successfully renewed, or that no franchise agreements reached their natural expiration date during that year.
Additionally, Exhibit G of the FDD, which lists franchisees that recently left the system, explicitly states "NONE," indicating that no franchisees left the system due to termination, cancellation, non-renewal, or any other reason in 2023. This corroborates the data presented in Table No. 3 and reinforces the conclusion that Azal Coffee did not experience any franchise non-renewals during that period.
Given that Azal Coffee began offering franchises in July 2024, the absence of non-renewals in prior years is not unexpected. The data reflects the early stages of the franchise system, where the focus is on establishing and growing the network rather than dealing with franchise agreement expirations or non-renewals. As the franchise system matures, it will be important to monitor the non-renewal rates to assess franchisee satisfaction and the long-term viability of the franchise agreements.