Under what conditions may Azal Coffee withhold consent to a new location for relocation?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You may request that we consent to the relocation of the Franchise Location if the lease or sublease for the Franchise Location expires or terminates without your fault or if the location is condemned, destroyed, or rendered unusable or you have other reasonable business reasons to relocate. If the new location proposed by you is approved by us as a viable location and you have submitted to us a lease for the new location for review as provided in Section 6.2, we will not unreasonably withhold consent to the relocation of the Franchise Location. Any relocation will be at your sole expense, including payment to us of the relocation fee specified in Section 4.9. We may withhold our consent to a new location if the location is outside of the Protected Area or if we believe the new location will adversely affect the location of another Store. If the Franchise Location becomes unusable for the Franchise Business through no fault of yours and a substitute location is
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees may request relocation of their franchise if their current lease expires, terminates without fault, or if the location becomes unusable. Additionally, relocation may be requested for other reasonable business reasons. However, Azal Coffee retains the right to withhold consent to a new location under specific circumstances.
Azal Coffee may withhold consent if the proposed new location falls outside of the franchisee's protected area. This is a fairly standard practice in franchising, as protected areas are designed to prevent encroachment and maintain market exclusivity for each franchisee. Approving a location outside of this area could potentially harm other franchisees within the system.
Furthermore, Azal Coffee may withhold consent if they believe the new location would adversely affect the location of another Azal Coffee store. This clause protects the overall network by preventing relocations that could cannibalize sales from existing, nearby locations. This decision is at the discretion of Azal Coffee, emphasizing the importance of open communication and a collaborative approach when considering relocation options.