When are the supplemental agreements for the Azal Coffee franchise required to be signed?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| THIS ADDENDUM is made the day of, 20, and modifies a |
|---|
| 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 ). |
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to the 2024 Azal Coffee Franchise Disclosure Document, the timing of signing supplemental agreements depends on the specific agreement. One addendum modifies a Franchise Agreement of the same date between Durar Investment, LLC and the Franchisee. This addendum is used when a franchisee is purchasing an existing Azal Coffee store from a current owner.
The effectiveness of this particular addendum and the Franchise Agreement itself is contingent upon two conditions: the completion of the initial training program and the closing of the purchase transaction, which includes the transfer of possession and ownership of the store. If these conditions are not met by a specified date in 20, Azal Coffee has the option to terminate the Franchise Agreement. If Azal Coffee terminates the agreement, they can retain the transfer fee. If the conditions are met by the specified date, the Franchise Agreement becomes effective on the date the franchisee receives possession and ownership of the store, referred to as the "Effective Date."
Another supplemental agreement discussed in the FDD pertains to the lease of the premises. In this case, the Landlord and Franchisee agree that the provisions contained in the addendum will be applicable to the lease, regardless of any conflicting information in the lease. This addendum is signed in consideration of Azal Coffee entering into a Franchise Agreement with the Franchisee for a location at the specified premises. The agreement ensures that the premises are used only for the operation of an Azal Coffee during the lease term, including renewals.