Will all Azal Coffee franchises contribute to the marketing fund at the same rate?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We currently collect 1% of Gross Sales and reserve the right to require that you make periodic contributions to a marketing fund in an amount of up to 3% of your Gross Sales. We are not obligated to implement a marketing fund or to continue the marketing fund, if implemented, and may change the amount or suspend contributions to or operations of the marketing fund or terminate the marketing fund (or reinstate the marketing fund if it is terminated). We intend that all Azal Coffee franchises will contribute to the marketing fund at the same rate. We further intend that our corporate and affiliate owned Stores will contribute to the marketing fund on the same basis as franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee intends for all franchise locations to contribute to the marketing fund at the same rate. The document also states that corporate and affiliate-owned stores will contribute to the marketing fund on the same basis as franchisees.
Currently, Azal Coffee collects 1% of gross sales, but they reserve the right to require periodic contributions of up to 3% of gross sales. However, Azal Coffee is not obligated to implement or continue a marketing fund. They may also change the amount, suspend contributions, or terminate the marketing fund altogether, and reinstate it if terminated.
In addition to the marketing fund, Azal Coffee may designate advertising areas where franchisees must participate in joint advertising programs and pay their proportionate cost. Azal Coffee may also require the formation of advertising cooperatives within these areas, necessitating membership and adherence to a cooperative agreement. These cooperative agreements may mandate additional contributions, separate from the marketing fund, with each Azal Coffee location having one vote in the cooperative's matters.