What is the estimated cost for the initial supply of goods from Wholesale, an affiliate of Azal Coffee?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ranchise fee.
You must also pay our affiliate, Wholesale $70,000 to $80,000 for your initial supply of coffee beans, tea, coffee and tea mixes, equipment, paper products, syrups, sauces, milk, cups, mugs, branded products, coffee supplies, bakery goods, uniforms, and other inventory items. This range also includes the estimated cost to ship the goods to your Franchise Location. You must pay this fee before you open and immediately upon invoice. This payment is n
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must purchase their initial supply of goods from Azal Coffee's affiliate, Wholesale. This initial supply, which includes coffee beans, tea, coffee and tea mixes, equipment, paper products, syrups, sauces, milk, cups, mugs, branded products, coffee supplies, bakery goods, uniforms, and other inventory items, costs between $70,000 and $80,000. This range also includes the estimated cost to ship the goods to the Franchise Location.
This payment is due before the Azal Coffee franchise opens and immediately upon receiving the invoice. The FDD states that this payment is non-refundable.
Franchisees should carefully consider this significant upfront cost and ensure they have sufficient capital to cover it. It is common practice in the franchise industry for franchisors or their affiliates to supply franchisees with initial inventory, but the specific items and cost can vary widely. Prospective Azal Coffee franchisees should compare this cost to similar franchises and carefully evaluate the terms of the supply agreement with Wholesale.