Risk Score
Pending analysis
Investment Range
$270,500 - $420,000
Franchise Fee
$25,000
Total US Locations
1
Business Summary
An Azal Coffee franchise operates a coffee shop that specializes in Yemeni-grown coffee. These shops sell coffee-based beverages, cold drinks, teas, coffee beans, coffee accessories, pastries, baked goods, and other related items. Azal Coffee locations typically range from 1,500 to 3,500 square feet with seating for 30 to 100 customers, and are generally found in metropolitan or suburban commercial areas with high traffic.
Corporate History
Durar Investment, LLC, operating as Azal Coffee, was organized in Michigan on December 28, 2022. An affiliate, V60 Coffee, LLC, opened the first Azal Coffee shop in September 2023, which is similar to the franchise being offered. Another affiliate, Azal Wholesale, LLC, provides certain required goods to franchisees. Azal Coffee began offering and selling franchises in July 2024.
Financial Overview
Investment Range
$270,500 - $420,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$25,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$170,000
Equipment Costs (High)
$260,000
Working Capital
$30,000
Audited Financials
No
Offers Financing
No
Financial Health Notes
Azal Coffee's financial statements are unaudited and only consist of an opening balance sheet as of July 11, 2024, as the company has not been in business for three years. The balance sheet shows a total equity of $2,945.35. Because Azal Coffee's most recent unaudited financial statement shows a net worth of less than $100,000, franchisees have the right to request the escrow of the initial investment and other funds paid until certain obligations are fulfilled.
Financing Details
Azal Coffee does not offer any direct or indirect financing for its franchisees. It also does not guarantee any of the franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
2,500
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Azal Coffee has no litigation history to report.
Bankruptcy History
Azal Coffee has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Azal Coffee franchisees and their affiliates must not be in default of any agreements with Azal Coffee and must not have received two or more default notices in the last 36 months. Franchisees must provide notice of their intent to renew, show proof of their ability to maintain possession of the franchise location, and complete any required facility upgrades to meet current appearance, equipment, and signage standards. They must also have fulfilled all reporting requirements and monetary obligations, completed any additional training, sign a general release, sign Azal Coffee's then-current Franchise Agreement (which may have different terms), pay a renewal fee, and obtain Azal Coffee's approval for the renewal.
Training & Support Program
Franchisor Assistance
Azal Coffee provides a range of assistance to its franchisees. Before opening, Azal Coffee helps with site approval, reviewing leases, approving construction plans, and providing specifications for equipment, fixtures, signs, and initial inventory. Franchisees also receive access to Azal Coffee's Brand Standards Manual and an initial training program. Azal Coffee also sends representatives for up to five days around the opening to assist with initial operations and grand opening advertising. During operation, Azal Coffee provides updates to its Brand Standards Manual, ongoing training, and operational advice through periodic site visits, email, and phone. They also designate authorized products, provide supplier information, manage the marketing fund, and review local advertising.
Initial Training Hours
56
Training Location
Dearborn, Michigan or other location to be determined by Azal Coffee
Ongoing Support
After opening, Azal Coffee provides ongoing support to its franchisees. This includes access to updates for the Brand Standards Manual and other specifications for all aspects of the store. Azal Coffee also offers ongoing training as needed. Representatives will periodically visit the franchisee's store to evaluate operations and provide operational advice and assistance. Additionally, Azal Coffee offers reasonable operational advice and assistance by email, internet resources, or telephone, and administers the marketing fund.
Franchise Requirements
Ideal Candidate Profile
Azal Coffee seeks franchisees who, as Designated Owners, will have an ownership interest in the franchise and preserve ultimate authority over the business. If the Designated Owner is not the General Manager, the General Manager must be full-time, personally responsible for the store, and actively market it. Both Designated Owners and General Managers must successfully complete Azal Coffee's initial training program and sign confidentiality/non-competition agreements. General Managers may also be required to have an equity or profit participation interest. Azal Coffee looks for individuals with strong management skills, business abilities, and a commitment to following procedures.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Azal Coffee franchisees are granted a Protected Area that is typically a 2 to 5-mile radius from the front door of their franchise location. If the location is in a densely populated area, this Protected Area may be smaller than a 2-mile radius.
Staffing Notes
Azal Coffee requires each franchise business to be under the direct supervision of a full-time General Manager. This manager must dedicate their full time and effort to the day-to-day operations, be personally responsible for the store, and strive to market the business and maximize customer satisfaction. The General Manager must successfully complete Azal Coffee's initial training program and sign confidentiality/non-competition agreements. Franchisees are responsible for training all their employees to meet operational standards and must maintain a continuous training program for all management and staff personnel, ensuring all employees complete required training modules.