What documentation is required to prove local advertising expenses for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
(3) You must provide documentation to our reasonable satisfaction that you have spent the required amount of local advertising or, in our discretion we may require you to pay the minimum local advertising amounts to us for advertising in your local market.
If we require you to pay the minimum local advertising amounts to us, we may use these amounts, in our discretion, for local advertising and promotion for you (including but not limited to Digital Advertising, social media or other internet posts, flyers, promotions, mailers, etc.) or as part of joint advertising or cooperative advertising.
If you fail to pay these amounts in your local market, you are required to pay the local advertising amount to us as additional royalty.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must provide documentation to the franchisor that they have spent the required amount on local advertising. The FDD states that Azal Coffee must find the provided documentation reasonably satisfactory. If a franchisee fails to provide satisfactory documentation, Azal Coffee has the discretion to require the franchisee to pay the minimum local advertising amounts directly to them.
If Azal Coffee requires the franchisee to pay the advertising costs to them, Azal Coffee may then use these funds for local advertising and promotion for the franchisee. This advertising can include digital advertising, social media or other internet posts, flyers, promotions, and mailers. Azal Coffee can also use the funds as part of joint advertising or cooperative advertising efforts.
The minimum local advertising and advertising cooperative fee is 1% of monthly Gross Sales, and it must be spent each month on advertising in the local market. If the franchisee fails to pay the local advertising amount in their local market, they are required to pay the local advertising amount to Azal Coffee as additional royalty.