Under the Azal Coffee Guaranty, what is the role of Durar Investment, LLC?
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. |
APPENDIX F - ELECTRONIC FUND TRANSFER AUTHORIZATION
AUTHORIZATION TO HONOR CHARGES DRAWN BY AND PAYABLE TO DURAR INVESTMENT, LLC ("FRANCHISOR")
The depositor identified below ("Depositor") authorizes Durar Investment, LLC and its designees and affiliates ("Franchisor") to initiate credit and debit entries electronically (referred to as an ACH or EFT transaction) or otherwise to Depositor's checking or savings account indicated below (the "Account") for charges associated with the Franchise Business including but not limited to Royalty fees, Marketing Fund contributions, late fees or interest, liquidated damages, fines, penalties, or any other fees that may become due to Franchisor. Depositor further authorizes the depository or bank designated below (the Depository") to credit and/or debit the same to the Account.
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- Introduction. Franchisee has entered into a Franchise Agreement with Durar Investment, LLC ("Franchisor"). The Franchise Agreement requires Franchisee's lease for the Premises to contain certain provisions. In consideration of the agreement of Franchisor to enter into a Franchise Agreement with Franchisee for an Azal Coffee franchise to be located at the Premises, Landlord and Franchisee agree that the provisions contained in this Addendum will be applicable to the Lease notwithstanding anything to the contrary contained in the Lease.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Durar Investment, LLC acts as the franchisor. This means Durar Investment, LLC is the entity granting the franchise to operate an Azal Coffee location.
Specifically, the Franchise Agreement is entered into between the franchisee and Durar Investment, LLC. In the context of a transfer, if a franchisee is purchasing an existing Azal Coffee store, the Franchise Agreement is amended by an addendum that acknowledges Durar Investment, LLC as the franchisor.
Furthermore, Durar Investment, LLC has the right to receive payments from franchisees, as evidenced by the Electronic Fund Transfer Authorization form, which authorizes franchisees to make payments to Durar Investment, LLC for fees such as royalty fees, marketing fund contributions, and other charges. Durar Investment, LLC also has options regarding the lease of the premises where the Azal Coffee franchise is located, including the right to be assigned the lease under certain conditions such as termination or abandonment of the franchise.