Who administers the marketing fund for Azal Coffee franchisees?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You must make contributions to the marketing fund as provided in Section 4.3. You acknowledge and agree that we are not obligated to implement a marketing fund or to continue a marketing fund, if implemented, and may suspend contributions to or operations of the marketing fund or terminate the marketing fund (or reinstate the marketing fund if it is terminated). We will administer and control the marketing fund in our sole discretion. We may use the marketing fund to: maximize general public recognition and patronage of the Franchise Marks and Azal Coffee Stores; formulate, develop and produce marketing, advertising, and sales support materials for use by franchisees; conduct marketing, advertising, and promotional programs on a national, regional or local level; provide marketing support services to franchisees; develop, maintain, and support the Franchise Technology and "Digital Marketing" (defined in Section 9.7) for us and/or franchisees; obtain public relations services; obtain marketing and advertising services from third parties to administer, create, distribute, place, publish, or otherwise provide marketing products and services to the marketing fund and to develop and implement Franchise Technology and Digital Marketing; pay the expenses of the marketing fund, including without limitation, salaries and other employment expenses of our marketing staff, administrative costs, overhead, and other expenses we incur in connection with the administration of the marketing fund; and other uses determined in our discretion.
We are not required to spend your marketing fund contributions to place advertising in your market or in any specific media. The marketing fund will be used to pay all expenses of the marketing fund. We will submit to you, on request, an annual report of the receipts and disbursements of the marketing fund, which may be unaudited and prepared by us.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the franchisor, referred to as "we," will administer and control the marketing fund at its sole discretion. Azal Coffee may choose to implement a marketing fund, continue one already in place, suspend contributions to it, or even terminate it.
The marketing fund can be used to increase public recognition of Azal Coffee, create marketing materials, conduct advertising programs at various levels, provide marketing support, develop franchise technology and digital marketing, obtain public relations services, and cover the expenses of the fund itself, including staff salaries and administrative costs.
Azal Coffee is not obligated to use the marketing fund contributions to place advertising in any specific market or media. The marketing fund will cover all its expenses, and Azal Coffee will provide an annual report of the fund's receipts and disbursements upon request, which may be unaudited and prepared by them.