Does Azal Coffee require prior written approval of the lease for the Franchise Location?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
6.2 Lease Requirements.
If you lease the Franchise Location, you must obtain our prior written approval of the lease and the lease must not be terminated, renewed or in any way altered or amended by you and the landlord without our prior written consent. In order to obtain our approval, you must submit to us a description of the proposed site, evidence confirming your prospects for obtaining the site, economic terms, use clause, and any other materials we specify. You must obtain our approval of the location under Section 6.1. You must submit to us and we must approve under this Section any letter of intent ("LOI") for the lease for the Franchise Location before you sign the LOI. The lease for the Franchise Location must be submitted to us and approved by us under this Section before you sign the lease for the Franchise Location. You must deliver to us a fully signed copy of the lease for the Franchise Location within five (5) days after the lease is fully signed. Although we must approve your lease for the Franchise Location, we will not evaluate or be responsible for the commercial reasonableness or suitability of the lease. You must evaluate and are solely responsible for the commercial reasonableness and suitability of your lease.
Unless we agree otherwise, the term of your lease and options must be equal to or greater than the term of this Agreement. As a condition to our approval of the lease, the lease must contain the provisions included in the form of Addendum to Lease attached to this Agreement as Appendix G (except to the extent we agree to waive any of the provisions) and other provisions that we reasonably specify. In addition, as a condition to approval of the lease, you must execute a Collateral Assignment of Lease in the form attached to this Agreement as Appendix H. Except in accordance with this Agreement, you must not assign your lease or let or sublet the Franchise Location or any portion of the Franchise Location without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must obtain prior written approval from Azal Coffee for their lease of the Franchise Location. Furthermore, franchisees cannot terminate, renew, alter, or amend the lease in any way without Azal Coffee's prior written consent. To get approval, franchisees must submit a description of the proposed site, evidence of securing the site, economic terms, the use clause, and any other materials Azal Coffee specifies. Franchisees must also get approval of the location itself under a separate section.
Azal Coffee requires franchisees to submit any letter of intent (LOI) for the lease for the Franchise Location for approval before signing the LOI. The actual lease must also be submitted and approved before the franchisee signs it. After the lease is fully signed, a fully signed copy must be delivered to Azal Coffee within five days.
While Azal Coffee must approve the lease, the company does not evaluate or take responsibility for the lease's commercial reasonableness or suitability. The franchisee is solely responsible for assessing these factors. Unless Azal Coffee agrees otherwise, the lease term and options must be equal to or greater than the term of the Franchise Agreement. The lease must contain provisions included in the form of Addendum to Lease attached to the Franchise Agreement as Appendix G, unless Azal Coffee agrees to waive any of these provisions, and other provisions that Azal Coffee reasonably specifies. Additionally, franchisees must execute a Collateral Assignment of Lease in the form attached to the Franchise Agreement as Appendix H as a condition of lease approval. Franchisees cannot assign their lease or sublet the Franchise Location without Azal Coffee's prior written consent, except as outlined in the Franchise Agreement.