Does Azal Coffee have any parent companies or predecessors?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not have any parents or predecessors. We have two affiliate(s). Our affiliate, V60 Coffee, LLC ("V60"), opened an Azal Coffee similar to the franchise being offered here in September 2023. V60's principal place of business is the same as ours. Our affiliate Azal Wholesale, LLC ("Wholesale") provides certain goods required to be purchased by our franchisees, including coffee beans, tea, coffee and tea mixes, equipment, paper products, syrups, sauces, milk, cups, mugs, branded products, coffee supplies, bakery goods, uniforms, and other inventory items. Wholesale's principal place of business is the same as ours. We or our affiliates, now existing or later created, may provide additional goods and services to our franchisees.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–11)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Durar Investment, LLC, the franchisor, does not have any parent companies or predecessors. However, Azal Coffee does have two affiliates: V60 Coffee, LLC and Azal Wholesale, LLC. V60 Coffee, LLC opened an Azal Coffee location similar to the franchises being offered in September 2023. Azal Wholesale, LLC provides certain goods required to be purchased by franchisees, including coffee beans, tea, coffee and tea mixes, equipment, paper products, syrups, sauces, milk, cups, mugs, branded products, coffee supplies, bakery goods, uniforms, and other inventory items. Both affiliates share the same principal place of business as Azal Coffee.
It is common for franchise systems to utilize affiliate companies for various functions such as real estate management, supply chain logistics, or marketing. In Azal Coffee's case, one affiliate operates a similar Azal Coffee location, which could serve as a testing ground for the franchise system. The other affiliate, Azal Wholesale, LLC, acts as a supplier for required goods, which allows Azal Coffee to maintain quality control and potentially generate additional revenue through the supply chain.
Prospective franchisees should be aware that they will be required to purchase certain goods from Azal Wholesale, LLC. This arrangement ensures consistency across all Azal Coffee franchise locations but may also limit a franchisee's ability to source goods from other suppliers. Franchisees should evaluate the pricing and quality of goods provided by Azal Wholesale, LLC to ensure they are competitive and meet their business needs. Additionally, franchisees should inquire about any potential conflicts of interest or benefits that Azal Coffee receives from its affiliates.