How does an Azal Coffee franchisee terminate the Electronic Fund Transfer Authorization?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
This authority is to remain in full force and effect until Depository has received joint written notification from Franchisor and Depositor of the Depositor's termination of the authority in time and in a manner as to afford Depository a reasonable opportunity to act on it.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the Electronic Fund Transfer (EFT) authorization remains in effect until the Depository (bank) receives joint written notification from both Azal Coffee (Franchisor) and the franchisee (Depositor). This notification must be provided in a timely manner that allows the Depository a reasonable opportunity to act on it.
This means that an Azal Coffee franchisee cannot unilaterally terminate the EFT authorization. Both the franchisee and Azal Coffee must agree in writing to terminate the authorization. This requirement protects Azal Coffee by ensuring that the franchisee cannot halt payments without the franchisor's consent.
For a prospective Azal Coffee franchisee, this implies that you will need to maintain open communication with Azal Coffee regarding any changes to payment methods or disputes. You should be aware that you cannot simply stop the electronic fund transfers without Azal Coffee's explicit agreement and written notification to the bank. This clause is designed to ensure a stable and reliable payment process for royalties and other fees due to Azal Coffee.