What is the 'Purchase Agreement' in the context of acquiring an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| THIS ADDENDUM is made the day of, 20, and modifies a |
|---|
| Franchise Agreement of the same date (the "Franchise Agreement") entered into by Durar Investment, LLC, a Michigan limited liability company, ("Franchisor") and |
| , a(" Franchisee "). In this |
| , a |
| A. Introduction . You entered into an agreement ("Purchase Agreement") for the |
| purchase of the Azal Coffee located at ("Store") from the current owner of the Store (the "Seller"). We and you |
| desire to amend the Franchise Agreement to reflect the fact that you are acquiring an open and |
| operating Store by transfer from one of our existing franchisees. All capitalized terms not otherwise |
| defined in this Addendum will have the same meaning as in the Franchise Agreement. |
| B. Contingency ; Date of Effectiveness of Franchise Agreement . The rights and |
| obligations of the parties under the Franchise Agreement are contingent on: (1) your completion of |
| our initial training program; and (2) the closing of the transaction under the Purchase Agreement and the transfer of possession and ownership of the Store to you. If these contingencies are not |
| met by, 20, we may, at our option, terminate the Franchise Agreement. If |
| we terminate the Franchise Agreement as provided in this Section, we will have the right to retain |
| the transfer fee paid by you (or the Seller) and otherwise the parties will have no further rights or |
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, a 'Purchase Agreement' is an agreement you enter into for the purchase of an existing Azal Coffee store from its current owner (the "Seller").
The FDD states that if you are acquiring an already open and operating Azal Coffee store, an addendum to the Franchise Agreement is made to reflect this transfer from an existing franchisee. The rights and obligations under the Franchise Agreement are contingent upon completing Azal Coffee's initial training program and the closing of the transaction under the Purchase Agreement, which includes the transfer of possession and ownership of the store to you.
If these conditions are not met by a specified date, Azal Coffee has the option to terminate the Franchise Agreement. In the event of termination, Azal Coffee retains the transfer fee paid by you (or the seller), and both parties have no further rights or obligations.