Does Azal Coffee need to approve the lease for the Franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Your lease must be approved by us. However, we will not evaluate or be responsible for the commercial reasonableness or suitability of your lease. That is your sole responsibility and we recommend that you engage independent counsel to assist you in the evaluation and negotiation of your lease. Also, unless we otherwise agree, you and your landlord must sign a Lease Addendum acknowledging certain rights we have under the Franchise Agreement that relate to your lease and you must sign a Collateral Assignment of Lease that assigns the lease to us at our option on the occurrence of certain events. A copy of our standard Lease Addendum is attached to the Franchise Agreement as Appendix G and a copy of our standard Collateral Assignment of Lease is attached to the Franchise Agreement as Appendix H.
In addition, your Franchise Location must be constructed or improved in accordance with the specifications we have issued for build-out, décor, signage, equipment layout, front of the house and back of the house space layout, etc. We must approve all drawings, plans and specifications relating to the design, construction and/or improvement of the Franchise Location. We will have the right to inspect and approve the construction before you open your Store to make sure the approved plans and any specifications issued by us have been followed. If, in our opinion, the approved plans and any applicable specifications have not been followed, you must resolve any issues to our satisfaction before opening your Store. Although we have the right to review and comment on and must approve all drawings, plans and specifications relating to the design,
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–25)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the lease for the franchise location must be approved by Azal Coffee. However, Azal Coffee will not evaluate or be responsible for the commercial reasonableness or suitability of the lease. It is the franchisee's sole responsibility to ensure the lease is commercially sound and suitable for their business needs, and Azal Coffee recommends that franchisees engage independent counsel to assist in the evaluation and negotiation of their lease.
Furthermore, unless Azal Coffee agrees otherwise, the franchisee and their landlord must sign a Lease Addendum acknowledging certain rights Azal Coffee has under the Franchise Agreement that relate to the lease. The franchisee must also sign a Collateral Assignment of Lease that assigns the lease to Azal Coffee at their option upon the occurrence of certain events. Copies of the standard Lease Addendum and Collateral Assignment of Lease are attached to the Franchise Agreement as Appendix G and Appendix H, respectively.
In addition to lease approval, the Franchise Location must be constructed or improved according to Azal Coffee's specifications for build-out, décor, signage, equipment layout, and space layout. Azal Coffee must approve all drawings, plans, and specifications related to the design, construction, and/or improvement of the Franchise Location. Azal Coffee has the right to inspect and approve the construction before the franchisee opens their store to ensure compliance with the approved plans and specifications. If the plans and specifications have not been followed, the franchisee must resolve any issues to Azal Coffee's satisfaction before opening the store.
While Azal Coffee reviews and approves the drawings, plans, and specifications, they are only ensuring compliance with their approved plans and specifications. Azal Coffee will not evaluate or be responsible for compliance with governmental requirements, legal requirements, or the adequacy of design and engineering related to the design and construction and/or improvement of the Franchise Location. The franchisee is solely responsible for those matters.