Under what circumstances related to leasing a location would Azal Coffee consider the franchise agreement breached?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
e that the provisions contained in this Addendum will be applicable to the Lease notwithstanding anything to the contrary contained in the Lease.
- 2. Use. The Premises must not be used for any purpose other than the operation of an Azal Coffee during the term of the Lease, including renewals.
- 3. Franchisor's Options. Landlord and Franchisee grant to Franchisor the exclusive right, exercisable at the option of Franchisor, to be assigned all right, title and interest of Franchisee in and to the Lease and the Premises:
- a. on the expiration or termination of the Franchise Agreement. Franchisor must give written notice of its intent to exercise this option within thirty (30) days of the event triggering the option;
- b. on the expiration or termination of the Lease or on Franchisee's loss of its rights of possession to the Premises, whether by Franchisee's default under the Lease or otherwise.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the franchise agreement contains provisions related to the franchisee's lease for the premises. If the franchisee uses the premises for any purpose other than operating an Azal Coffee store during the lease term, including renewals, it would be considered a breach of the agreement.
Additionally, the landlord agrees that the real estate subject to the lease should be used solely for the operation of an Azal Coffee. If the franchisee begins to use the real estate in any other manner, the landlord is required to notify Azal Coffee, and the landlord will consider such use as an event of default.
These stipulations ensure that the Azal Coffee franchise maintains its brand identity and operational consistency. Prospective franchisees should carefully review the lease agreement and addendum to fully understand these obligations and avoid any actions that could lead to a breach of contract.