Who is responsible for the selection of the site for my Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ssistance.**
Before Opening
Before you open your business, we will:
- Approve the area in which you will select the site for your franchise. We will also review your proposed location for approval (Section 6.1 of Franchise Agreement).
We do not select the site for your franchise. We may or may not own the location of your franchise and lease it to you. You will generally lease your Franchise Location from an unrelated third party or potentially from us. You are responsible for the selection of the site of your franchise. However, we may assist you and may recommend the site for your Store. We must also approve the site for your Store. The factors that we consider when we recommend or approve a site include the surrounding population density, income levels, vehicle traffic counts, pedestrian traffic counts, visibility, ingress and egress, space dimensions, parking availability, signage restrictions, use restrictions, and economic terms. We may use a third party to research the market prior to approving the site which would be paid by the franchisee. Although we may provide assistance in finding your location, it is your sole responsibility to find a suitable location for your Store and to evaluate the commercial value of the location for operation of your franchise. Our location assistance, recommendations and/or our approval of your location do not constitute a representation or guaranty of the commercial value, profitability or success of your location or your business.
If we cannot agree on a site and you have not obtained a site for your Franchise Business within 3 months of the date of the Franchise Agreement, we may terminate the Franchise Agreement. However, if you anticipate that you will not obtain a site within 3 months after the date of the Franchise Agreement, you may obtain a 3-month extension of the deadline. In order to obtain the extension, you must, no later than 30 days before the end of the 3-month period: (a) notify us in writing that you intend to extend the deadline; and (b) pay us a nonrefundable fee of $5,000 for the extension. You may not obtain more than one 3-mon
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the franchisee is primarily responsible for selecting the site for their franchise. However, Azal Coffee does provide some assistance and requires approval of the site. Specifically, Azal Coffee will approve the general area where the franchisee will select their site and will also review the proposed location. Azal Coffee may also offer recommendations for potential sites.
Azal Coffee considers factors such as population density, income levels, traffic counts, visibility, space dimensions, parking, signage, and economic terms when evaluating a site. They may also use a third party to conduct market research, the cost of which would be borne by the franchisee. Despite any assistance offered, the ultimate responsibility for finding a suitable location and evaluating its commercial value rests solely with the franchisee. Azal Coffee explicitly states that their assistance or approval does not guarantee the location's profitability or success.
If a mutually agreeable site cannot be found within 3 months of the franchise agreement date, Azal Coffee has the right to terminate the agreement. However, the franchisee can obtain a one-time 3-month extension by notifying Azal Coffee in writing at least 30 days before the initial deadline and paying a nonrefundable fee of $5,000. This highlights the importance of diligent site selection and the potential financial implications of delays.