Is the amount spent on grand opening advertising and promotions for Azal Coffee in addition to other advertising obligations?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
nsions of time to perform obligations.
ARTICLE 9 – ADVERTISING
9.1 Grand Opening Advertising.
You agree to spend an amount specified by us to conduct grand opening advertising and promotions. The amount specified will range from Three Thousand Dollars ($3,000) to Six Thousand Dollars ($6,000). The grand opening advertising and promotions must be conducted in accordance with a plan that you must submit to us. We have the right to modify your plan, in our sole discretion, and may require you to use a public relations firm to assist with your grand opening. The grand opening advertising and promotions must occur within the period beginning on the opening of the Franchise Business and ending approximately four (4) weeks after the opening of the Franchise Business. The amount you must spend on grand op
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the amount franchisees must spend on grand opening advertising and promotions is separate from, and in addition to, their other advertising obligations.
The FDD specifies that franchisees must spend between $3,000 and $6,000 on grand opening advertising and promotions. This expenditure must occur within four weeks of opening their Azal Coffee franchise. Franchisees are required to submit a plan for these activities, which Azal Coffee has the right to modify. Azal Coffee may also require franchisees to use a public relations firm to assist with the grand opening.
This means that new Azal Coffee franchisees should budget not only for ongoing advertising expenses, but also for this initial, more intensive promotional period. The fact that Azal Coffee retains the right to modify the franchisee's plan and potentially mandate the use of a PR firm gives Azal Coffee significant control over how these funds are spent.