Does the obligation to renovate the Azal Coffee Franchise Location depend on a request from the franchisor?
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 are obligated to renovate and modernize their franchise location upon the franchisor's request. Specifically, this includes the premises, equipment, furniture, fixtures, signs, and Franchise Trade Dress to conform to the current image of Azal Coffee stores. This renovation is required once during the initial term of the Franchise Agreement, but not until after the end of the 5th year of the initial term.
The cost of such renovations and modernizations is capped at $75,000. After receiving notice from Azal Coffee, franchisees must initiate the specified actions within thirty days and diligently work to complete them.
If a franchisee fails to start the required repairs, maintenance, renovations, or modernizations within the 30-day period after receiving written notice, Azal Coffee has the right to complete the work at the franchisee's expense. The franchisee is then required to reimburse Azal Coffee for all costs incurred. Additionally, the franchisee must indemnify Azal Coffee and its affiliates from any liabilities, damages, or costs, including attorney's fees, arising from the construction, renovation, or operation of the Franchise Business.