What standards must an Azal Coffee franchisee adhere to regarding the maintenance of the Franchise Location?
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.
- (b) Within the last thirty-six (36) months we have not sent you two (2) or more notices of default of the terms of this Agreement or of any of our specifications, standards, or operating procedures (whether or not the notices related to the same or different violations and whether or not you have remedied those violations).
- (c) You provide written notice of your intent to continue as a franchisee not more than twelve (12) months and not less than six (6) months before the beginning of the option period.
- (d) You are able to maintain possession of the Franchise Location or you have been able to secure and develop, in compliance with our then applicable standards used in the granting of a franchise, suitable alternative premises within your Protected Area for your Store. Any alternative premises must be acceptable to and approved in advance by us.
- (e) You agree to take any action specified by us to make the Franchise Business comply with current appearance, Franchise Trade Dress, equipment, fixture, and signage requirements. You acknowledge that we may not uniformly impose refurbishing obligations on renewal of our franchises based on numerous factors and that we may require you to take steps to refurbish the Franchise Location that we have not required of other franchisees.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must adhere to specific standards to maintain their franchise location, particularly if they seek to renew their franchise agreement. To qualify for a renewal option of two additional five-year terms, franchisees must meet several conditions, including maintaining possession of the franchise location or securing an alternative premises that complies with Azal Coffee's standards. These alternative premises must be approved in advance by the franchisor.
Furthermore, franchisees must agree to take actions to ensure the franchise business complies with current appearance, trade dress, equipment, fixture, and signage requirements. Azal Coffee does not uniformly impose refurbishing obligations, and the requirements may vary based on several factors. This means a franchisee might be required to refurbish their location even if others are not.
Additionally, the lease agreement for the premises must include specific provisions outlined by Azal Coffee. The premises can only be used for operating an Azal Coffee franchise. Upon termination or expiration of the franchise agreement, Azal Coffee has the option to be assigned the franchisee's rights to the lease and the premises. This addendum ensures that the location continues to operate as an Azal Coffee, or reverts to the franchisor's control under certain conditions.