What is the Deadline Extension Fee for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit and | Cost of audit or | On receipt of our | This cost must be paid if |
| Inspection Expenses | inspection plus employee expenses | billing | the audit is necessary because of your failure to furnish reports or financial information, or the audit discloses an understatement of 2% or more of Gross Sales. |
| Product and Supplier Approval Fee | Up to $3,000 | Before approval of a product or supplier | You may be required to pay this fee if you request that we approve a product or supplier. |
| Data Security Consultant and Cyber Insurance Costs | Cost of engaging vendor or of cyber insurance policy | Periodically by EFT that we initiate | We may require you to pay for a consultant on data security and/or for a cyber insurance policy. We don't currently impose these requirements but reserve the right to do so in the future. |
| Indemnification | Amount will vary under circumstances | As incurred | You must reimburse us if we incur liability from the operation of your franchise. |
| Liquidated Damages for Failure to Comply with Obligations | $100 to $2,500 depending on the violation | On the date specified by us | We have the right to charge liquidated damages if you fail to comply with certain obligations under the Franchise Agreement. |
| Deadline Extension Fee | $5,000 | At the time you request an extension | You may obtain a three month extension of the time to obtain a location if you timely notify us and pay a non refundable extension fee. |
| Liquidated Damages For Loss of Bargain Under Franchise Agreement | See Note (7) | On demand | Payable as part of the damages due to us if you breach the Franchise Agreement and the Franchise Agreement |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, a franchisee may request a three-month extension to secure a location. This extension requires timely notification to Azal Coffee and payment of a non-refundable Deadline Extension Fee.
The Deadline Extension Fee is $5,000, and it is due at the time the franchisee requests the extension. Because the fee is non-refundable, the franchisee will not receive this money back, regardless of whether they eventually secure a location or not.
Franchisors often charge fees for various services and options, and it is not uncommon to see fees associated with deadline extensions. This fee likely covers Azal Coffee's administrative costs and potential lost revenue due to the delay in opening the franchise location. Prospective franchisees should factor this potential cost into their initial budget and timeline for opening their Azal Coffee franchise.