factual

Is an Azal Coffee franchisee required to pay a mystery shopper fee to Azal Coffee?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

You must pay a monthly mystery shopper fee to us in an amount equivalent to the actual cost incurred by us. This fee must be paid by the 5th day of each month and is not refundable. We will use the mystery shopper fees collected from Stores to administer and/or have a third party administer a program to evaluate and report on your operations and the operations of other franchisees and to otherwise support the uniformity and quality of operations of Stores. We may use the fees collected for purposes reasonably related to this program, including, without limitation, paying us or a third party a fee for administering this program and reimbursement to us for the costs of any of our employees' time relating to administration of this program. This program

may involve the use of mystery shoppers and other techniques for evaluating and reporting on operations. You must not take any actions that will interfere with this program or the actions of mystery shoppers.

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 pay a monthly mystery shopper fee. This fee is equivalent to the actual cost incurred by Azal Coffee. The franchisee must pay this fee by the 5th day of each month, and it is non-refundable.

Azal Coffee uses the mystery shopper fees collected from all Azal Coffee stores to administer a program that evaluates and reports on the operations of individual franchises. This program aims to support the uniformity and quality of operations across all stores. The fees may cover the costs of administering the program, including payments to Azal Coffee or a third party, and reimbursement for Azal Coffee employees' time spent on program administration.

The mystery shopper program may involve using mystery shoppers and other evaluation techniques. Azal Coffee franchisees must not interfere with this program or the actions of the mystery shoppers. This ensures that the evaluations are conducted fairly and accurately, providing valuable feedback for maintaining brand standards and operational quality.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.