Besides the mobile application and technology fee, what other technology-related expenses are Azal Coffee franchisees responsible for?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
(or reinstate the marketing fund if it is terminated).
4.4 Mobile Application and Technology Fee.
You must pay us a mobile application and technology fee, which amount is currently fifty dollars ($50.00) per month. The mobile application and technology fee must be paid to us on the first business day of each month in the manner specified in Section 4.13. We reserve the right to increase the mobile application and technology fee to up to three hundred dollars ($300.00) per month upon written notice to you. The mobile application and technology fee will be used by us for expenses relating to the administration and maintenance of technology used in our Franchise System. The mobile application and technology fee is not refundable. Although you must pay the mobile application and technology fee to us, you will still be responsible for any license fees and the expense of maintenance and updates, including service contracts, relating to point of sale ("POS") computer system software and other technology used in the Franchise Business. In addition to the mobile application and technology fee, we may collect from you and pay to third parties initial set-up and ongoing licensing fees for any Franchise Technology provided by third parties. We may also charge you a fee to manage any Franchise Technology provided by third parties, which shall be in addition to the mobile application and technology fee. These fees must be paid in the man
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are responsible for several technology-related expenses beyond the monthly mobile application and technology fee. While franchisees must pay Azal Coffee a recurring mobile application and technology fee, they are also responsible for license fees, maintenance, and updates for the point of sale (POS) computer system software and other technologies used in their franchise business. These expenses also include service contracts. Azal Coffee may also collect initial set-up and ongoing licensing fees from franchisees to pay to third parties for any Franchise Technology provided by them. Azal Coffee may also charge a fee to manage any Franchise Technology provided by third parties, which would be in addition to the mobile application and technology fee.
These fees are to be paid in the manner specified in Section 4.13 of the franchise agreement, typically by the 1st of each month or at other times specified by Azal Coffee. Section 4.13 specifies that payments to Azal Coffee must be made via electronic or similar funds transfer. Azal Coffee retains the right to modify the Franchise Technology in the future, and franchisees are obligated to obtain and use the changed or modified technology within 30 days of receiving written notice.
Prospective Azal Coffee franchisees should carefully consider these additional technology costs, as they can impact the overall profitability of the franchise. It is important to budget for these ongoing expenses and to understand the potential for future technology upgrades or changes that may require further investment. Franchisees should also clarify with Azal Coffee the specific technology requirements and associated costs before signing the franchise agreement.