What agreement must attendees of the Azal Coffee initial training program sign before beginning the program?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Your payments to us for royalty, local advertising fees, marketing fund contributions, mobile application and technology fees, training, renewal and transfer fees, management fees, mystery shopper fees, relocation fees, litigation expenses, late charges and interest, amounts owed for products or services provided by us or our affiliates, amounts owed for maintenance expenses we incur under Section 8.8, amounts owed for management fees, amounts owed for liquidated damage amounts, and all other amounts you owe to us or our affiliates must be made by electronic or similar funds transfer in the appropriate amounts from your bank account to our accounts, and at the places or in the manner we may specify. You must make payments at the times specified in this Agreement or as we may otherwise specify. You agree that we may specify payment by electronic fund transfers that we initiate. You must sign and deliver to your bank and to us the documents necessary to authorize and effectuate fund transfers as specified by us. You agree not to terminate the authorization as long as this Agreement is in effect. You agree not to close your bank account without providing us prior written notice and establishing a substitute bank account for the transfers. 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)
The 2024 Azal Coffee FDD states that franchisees must sign and deliver documents to their bank and to Azal Coffee to authorize and effectuate fund transfers as specified by Azal Coffee. This requirement ensures that Azal Coffee can receive payments for various fees and services. The franchisee must agree not to terminate this authorization while the Franchise Agreement is in effect and cannot close the bank account without providing prior written notice to Azal Coffee and establishing a substitute bank account for transfers.
This electronic fund transfer authorization is crucial for the ongoing financial transactions between the franchisee and Azal Coffee. It covers payments for royalties, local advertising fees, marketing fund contributions, mobile application and technology fees, training, renewal and transfer fees, management fees, mystery shopper fees, relocation fees, litigation expenses, late charges and interest, amounts owed for products or services provided by Azal Coffee or its affiliates, amounts owed for maintenance expenses, amounts owed for liquidated damage amounts, and all other amounts owed to Azal Coffee or its affiliates.
This requirement is typical in franchising, as it provides a streamlined and reliable method for franchisors to collect necessary fees. However, franchisees should carefully review the terms to understand their obligations and ensure they can comply with the electronic fund transfer requirements. Franchisees should also be aware that Azal Coffee may require payments at different intervals than other Azal Coffee franchisees.