What is the fee for an Azal Coffee franchisee to obtain a three-month extension of time to obtain a location?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
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 fee.
The fee for this extension is $5,000, due at the time the franchisee requests the extension. This fee is non-refundable, meaning that even if the franchisee is ultimately unable to secure a location within the extended timeframe, the $5,000 will not be returned.
Franchisors often impose such fees to cover administrative costs and to ensure that franchisees are serious about their site selection efforts. The non-refundable nature of the fee incentivizes franchisees to diligently pursue suitable locations within the initial timeframe, while still providing a safety net if unforeseen delays occur.