What fees are Azal Coffee franchisees responsible for paying to use and maintain the Franchise Technology?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We may require or authorize you to use certain technology in connection with the Franchise Business, which may include websites, point of sale and customer management systems (which may include computer hardware, software, mobile applications, web-based systems, licenses to use proprietary software or systems, etc.), intranet, extranet, web-based systems, other electronic media, and/or other technology specified by us (the "Franchise Technology"). Uses of the Franchise Technology may include advertising for all Azal Coffees, lists of Azal Coffees, on-line ordering, inventory control for Stores, entering sales and other information, projecting sales, reviewing reports, placing orders with suppliers, posting the Brand Standards Manual and communication between us, franchisees and customers. You must acquire and use the Franchise Technology specified by us in the Franchise Business and in the manner specified by us. Your access to and use of the Franchise Technology is subject to your compliance with the terms and conditions of use and other policies and procedures specified by us. You agree to comply with those terms, conditions, policies and procedures. You must pay all required license fees, service fees, management fees, and support, maintenance, update, and upgrade costs to use and maintain the Franchise Technology in the manner specified by us. We may change or modify the Franchise Technology in the future, including changes in the specifications and components relating to the Franchise Technology. In that case, you must obtain and begin to use the changed or modified Franchise Technology within thirty (30) days after you receive written notice from us.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are required to cover all expenses associated with the Franchise Technology. This includes license fees, service fees, management fees, and the costs of support, maintenance, updates, and upgrades necessary to keep the technology operational. The Franchise Technology may include websites, point of sale systems, customer management systems, computer hardware, software, mobile applications, web-based systems, licenses to use proprietary software or systems, intranet, extranet, web-based systems, other electronic media, and/or other technology specified by Azal Coffee.
Azal Coffee retains the right to modify the Franchise Technology in the future, which may involve changes to its specifications and components. Should such changes occur, franchisees are obligated to adopt and implement the updated technology within 30 days of receiving written notice from Azal Coffee. This ensures that all Azal Coffee locations operate on the most current technological standards as defined by the franchisor.
This requirement ensures that Azal Coffee franchisees maintain a consistent and up-to-date technological infrastructure across all locations. For a prospective franchisee, this means budgeting not only for the initial costs of adopting the technology but also for ongoing and potentially unforeseen expenses related to updates and modifications mandated by Azal Coffee. It is important to clarify with Azal Coffee what these costs have averaged for existing franchisees to get a sense of the potential financial impact.