What is the 'Old Agreement' referenced in the Azal Coffee franchise agreement addendum?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| |
EXHIBIT C
ADDENDUM TO FRANCHISE AGREEMENT- RENEWAL
ADDENDUM TO FRANCHISE AGREEMENT-RENEWAL
| Franchise Agreement | THIS ADDENDUM is made the day of, 20, and modifies a of even date (the "Franchise Agreement") entered into by Durar Investment, LLC, a Michigan limited liability company, ("Franchisor") and, a ("Franchisee"). In this Addendum, "we," "us," and "our" refers to Franchisor and "you" and "your" refers to Franchisee. | |
|---|---|---|
| A. signed a new franchise | We and you are parties to a franchise agreement dated Introduction. , the term of which expired or will expire on, 20 ("Old Agreement"). You expressed your desire to renew your franchise relationship with us and you agreement to which this Renewal Addendum is attached (the "Franchise Agreement"). We and you desire to amend the Franchise Agreement to reflect your status as an existing franchisee renewing an ongoing relationship. All capitalized terms not otherwise defined in this Renewal Addendum will have the same meaning as in the Franchise Agreement. | |
| B. discharge us | As a condition of renewal, you release and forever Release of Franchisor. |
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
Based on the 2024 Azal Coffee Franchise Disclosure Document, the term 'Old Agreement' is not explicitly defined. However, the addendum modifies a Franchise Agreement of the same date entered into by Durar Investment, LLC ('Franchisor') and the franchisee. The addendum is used when a franchisee is acquiring an open and operating Azal Coffee store from an existing franchisee. The document refers to a 'Purchase Agreement' related to the purchase of the Azal Coffee store from the current owner (the 'Seller').
Several sections of the Franchise Agreement are modified by the addendum. For example, the franchisee may not be required to pay the initial franchise fee, but instead pays a transfer fee. Also, certain services outlined in Section 5 of the Franchise Agreement may be deleted or amended. The addendum also specifies conditions that must be met, such as completing the initial training program and closing the transaction under the Purchase Agreement, for the Franchise Agreement to become effective.
Prospective Azal Coffee franchisees should carefully review the addendum to understand how it modifies the standard Franchise Agreement, especially regarding fees, services, and conditions for the agreement's effectiveness. It is important to clarify with Azal Coffee what specific obligations and benefits are altered by the addendum compared to a standard franchise agreement for a new location.