Does the Azal Coffee franchise agreement include a Mobile Application and Technology Fee?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
marketing fund or terminate the marketing fund (or reinstate the marketing fund if it is terminated).
4.4 Mobile Application and Technology Fee.
You must pay us a mobile application and technology fee, which amount is currently fifty dollars ($50.00) per month. The mobile application and technology fee must be paid to us on the first business day of each month in the manner specified in Section 4.13. We reserve the right to increase the mobile application and technology fee to up to three hundred dollars ($300.00) per month upon written notice to you. The mobile application and technology fee will be used by us for expenses relating to the administration and maintenance of technology used in our Franchise System. The mobile application and technology fee is not refundable. Although you must pay the mobile application and technology fee to us, you will still be responsible for any license fees and the expense of maintenance and updates, including service contracts, relating to point of sale ("POS") computer system software and other technology used in the Franchise Business. In addition to the mobile application and technology fee, we may collect from you and pay to third parties initial set-up and ongoing licensing fees for any Franchise Technology provided by third parties. We may also charge you a fee to manage any Franchise Technology provided by third parties, which shall be in addition to the mobile application and technology fee. These fees must be paid in the manner specified in Section 4.13 by the 1st day of each month (or at such other times as we may specify). We do not currently, but reserve the right to require that you pay us or our affiliates an administrative fee for administering franchise and marketing programs for the Franchise System. We reserve the right to increase the administrative fee in our sole and complete discretion. The administrative fee must be paid in the matter spec
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must pay a mobile application and technology fee. Currently, this fee is $50.00 per month, due on the first business day of each month. Payments must be made via electronic funds transfer. Azal Coffee retains the right to increase this fee up to $300.00 per month with written notice.
The purpose of the mobile application and technology fee is to cover expenses related to the administration and maintenance of technology used within the Azal Coffee franchise system. This fee is non-refundable.
Even with the mobile application and technology fee, franchisees are still responsible for license fees and the costs of maintenance and updates, including service contracts, for point of sale (POS) computer system software and other technology used in the franchise business. Azal Coffee may also collect and remit initial set-up and ongoing licensing fees to third parties for Franchise Technology. Additionally, Azal Coffee may charge a separate fee to manage Franchise Technology provided by third parties, which is in addition to the mobile application and technology fee.