For Azal Coffee, is written approval required from the company for the Franchise Location?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) You are able to maintain possession of the Franchise Location or you have been able to secure and develop, in compliance with our then applicable standards used in the granting of a franchise, suitable alternative premises within your Protected Area for your Store. Any alternative premises must be acceptable to and approved in advance by us.
- 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. Landlord shall provide Franchisor notice of default as provided under Section 9 and Section 10. Franchisor shall exercise its right to accept assignment of the Lease within such periods; and
- c. on Franchisees abandonment of the Premises. For this purpose, abandonment will be conclusively presumed if Franchisee fails to have the business open and fully operational for two (2) consecutive days.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, written approval is required from the company regarding the franchise location under certain circumstances. Specifically, if a franchisee seeks to secure alternative premises within their protected area for their store, those alternative premises must be acceptable to and approved in advance by Azal Coffee. This requirement is part of the conditions a franchisee must fulfill to remain an Azal Coffee franchisee for additional terms.
This stipulation ensures that any relocation or change in premises meets Azal Coffee's standards and maintains the brand's image and operational consistency. The franchisor's approval helps to guarantee that the new location is suitable for the business, aligning with the brand's overall strategy and market presence.
For a prospective Azal Coffee franchisee, this means that while they may have some flexibility in choosing or changing their location within their protected area, they cannot do so without the franchisor's explicit consent. This requirement protects both the franchisee and the franchisor by ensuring that the location is viable and meets the brand's standards. It is important for franchisees to communicate and coordinate closely with Azal Coffee when considering any changes to their store's location to avoid potential conflicts or delays.
Moreover, the franchisor also has the exclusive right to be assigned the franchisee's lease for the premises upon the expiration or termination of the Franchise Agreement, the expiration or termination of the lease, or the franchisee's abandonment of the premises. This addendum ensures that the premises must only be used for the operation of an Azal Coffee during the term of the lease, including renewals.