What must I do to obtain an extension for finding a site for my Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ur 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, if you need more time to secure a location, you can request a one-time, three-month extension to the initial three-month deadline. To obtain this extension, you must notify Azal Coffee in writing of your intent to extend the deadline at least 30 days before the initial three-month period expires.
In addition to providing written notice, you are required to pay Azal Coffee a nonrefundable fee of $5,000 for the extension. It is important to note that this fee is nonrefundable, regardless of whether you ultimately find a suitable site or not during the extension period.
This extension provides additional time to find a suitable location, but it comes at a cost. Failing to meet the initial deadline without obtaining an extension can result in the termination of the Franchise Agreement. Since only one extension is permitted, prospective Azal Coffee franchisees should carefully consider their site selection timeline and financial resources before committing to the franchise.