Regarding the Azal Coffee Franchise Agreement, what obligation exists concerning the continuous operation of the franchise, as it relates to the date of opening?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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EXHIBIT D-1
ADDENDUM TO FRANCHISE AGREEMENT-TRANSFER
ADDENDUM TO FRANCHISE AGREEMENT-TRANSFER
| THIS ADDENDUM is made the day of, 20, and modifies a |
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| 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 |
| obligations to each other under the Franchise Agreement; provided that, the confidentiality and |
| non-competition provisions of the Franchise Agreement will survive the termination. If these |
| contingencies are met by the date specified above in this Section, then the Franchise Agreement |
| will become effective on the date that you receive possession and ownership of the Store (the "Effective Date"). |
| Ellective Date ). |
| C. Refurbishing of Franchise Location. You must complete the refurbishing, |
| updating, upgrading, construction and/or improvement of the Franchise Location and the |
| equipment, fixtures and signs at the Franchise Location as specified below. These actions must |
| be completed within 90 days of the date of the Effective Date of this Addendum. |
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to the 2024 Azal Coffee Franchise Disclosure Document, if a franchisee is acquiring an already open Azal Coffee store, they must complete refurbishing, updating, upgrading, construction, and/or improvement of the franchise location, including equipment, fixtures, and signs, within 90 days of the Effective Date of the addendum. The Effective Date is the date the franchisee receives possession and ownership of the store.
This requirement ensures that all Azal Coffee locations maintain a consistent brand image and meet current standards. For a new franchisee taking over an existing store, this means they need to be prepared to invest in renovations and upgrades shortly after taking ownership. The specific actions required will be detailed in the addendum to the Franchise Agreement.
Failure to complete the required refurbishments within the 90-day timeframe could potentially lead to consequences outlined in the Franchise Agreement, so franchisees should carefully review the terms and plan accordingly. This is a fairly standard practice in franchising, as brands want to ensure uniformity and that all locations reflect current brand standards.