What is the maximum cost an Azal Coffee franchisee can be required to spend on renovations and modernizations?
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 t
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees may be required to renovate and modernize their Franchise Location once during the initial term of the Franchise Agreement, specifically after the end of the 5th year. This includes the premises, equipment, furniture, fixtures, signs, Franchise Trade Dress, and other property to conform to Azal Coffee's current image standards.
The maximum cost for such a renovation and modernization is capped at $75,000. Franchisees must begin the specified actions within 30 days of receiving notice and diligently work to complete the updates.
If a franchisee fails to initiate the required repairs, maintenance, renovations, or modernizations within 30 days of written notice, 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 and its affiliates from any liabilities arising from the construction, renovation, or operation of the Franchise Business.