Does Azal Coffee acknowledge that payment intervals may vary among different Azal Coffee franchisees?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You also agree to make all required payments to us daily or weekly or at some other interval, instead of monthly or as otherwise provided in this Agreement, if we specify. You acknowledge that we may require you to make required payments at different intervals than other Azal Coffee franchisees.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the company acknowledges that payment intervals may vary among its franchisees. Azal Coffee specifies that franchisees must make payments for various fees and amounts owed via electronic transfer, at times specified in the Franchise Agreement or as otherwise directed by Azal Coffee. These payments cover royalties, advertising fees, training, and other costs.
Azal Coffee retains the right to specify the payment schedule, potentially requiring franchisees to make payments daily, weekly, or at other intervals instead of monthly, even if the standard agreement specifies otherwise. The document explicitly states that Azal Coffee may require different payment intervals from different Azal Coffee franchisees.
This means that a new Azal Coffee franchisee might be subject to a different payment schedule than existing franchisees, potentially impacting their cash flow management. Prospective franchisees should be prepared for the possibility of more frequent payment demands and should inquire about the specific payment schedule they will be subject to during their due diligence.