What is the 'Store' referring to in the Azal Coffee addendum?
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. |
| D. Initial Franchise Fee; Transfer Fee . You are not required to pay the initial |
| D. Initial Franchise Fee; Transfer Fee . You are not required to pay the initial franchise fee specified in Section 4.1 of the Franchise Agreement. In lieu of the initial franchise fee, |
| you (or the Seller) must pay a transfer fee in the amount of $ The transfer fee is |
| payable on or before the signing of this Addendum. |
| E. Services Provided to You . Section 5 of the Franchise Agreement is amended as |
| follows: (1) Section 5.5 is deleted. |
| (1) Section 5.5 is deleted. |
| (2) The first se |
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the term 'Store' refers to a business operating under the Azal Coffee franchise system. This includes adherence to the brand's systems, trademarks, and trade dress, whether the store is operated by Azal Coffee itself, its affiliates, or other authorized franchisees. The specific Azal Coffee location that a franchisee is licensed to operate under the Franchise Agreement is referred to as the 'Franchise Business.'
In the context of an addendum to the Franchise Agreement, 'Store' refers to an existing Azal Coffee location being acquired by a new franchisee from a current owner. The addendum modifies the original agreement to reflect this transfer of ownership and operation. The franchisee's obligations under the Franchise Agreement are contingent upon completing initial training and finalizing the store's purchase, including the transfer of possession and ownership.
Prospective franchisees should understand that acquiring an existing 'Store' involves specific steps, such as refurbishing the location within 90 days of the effective date. Instead of paying an initial franchise fee, the franchisee (or the seller) pays a transfer fee. This addendum acknowledges that certain services typically provided to new franchisees may be modified or waived, reflecting the fact that the franchisee is taking over an operational business rather than starting from scratch. The agreement also confirms that location approval processes are streamlined, given that the location is already established as an Azal Coffee store.