What sections of the Azal Coffee Franchise Agreement are acknowledged for location approval and development?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
our Store opens for business unless sooner terminated as provided in this Agreement.
3.2 Option.
You will have the option to remain an Azal Coffee franchisee for two (2) additional periods of five (5) years if, at the beginning of the option period, all of the following conditions are fulfilled:
- (a) You are not in default under this Agreement or any other agreement with us or our affiliates and no affiliate of yours is in default under any agreement with us or our affiliates.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
Based on the 2024 Azal Coffee Franchise Disclosure Document, Section 3.2(d) of the agreement addresses location approval and development in the context of franchise renewal. Specifically, it states that to renew the franchise for two additional five-year terms, the franchisee must either maintain possession of the current Franchise Location or secure and develop an alternative premises within their Protected Area.
This alternative location must meet Azal Coffee's standards for granting a franchise at that time and requires advance approval from Azal Coffee. This clause ensures that franchisees seeking renewal meet the brand's current standards for location and development, whether they remain at their original site or move to a new one.
For a prospective Azal Coffee franchisee, this means that the ability to renew the franchise is contingent on maintaining an approved location. If the franchisee needs to move, they must find a site that meets Azal Coffee's then-current standards and receive approval, adding a layer of complexity and potential cost to the renewal process. This requirement protects the Azal Coffee brand by ensuring all locations, including renewed ones, adhere to current standards.