When is the grand opening advertising fee due for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Grand Opening Advertising (2) | $3,000 to $6,000 | As incurred | As incurred | Advertising Providers |
- (2) You must spend an amount specified by us to conduct grand opening advertising and promotions.
The amount specified will range from $3,000 to $6,000.
The grand opening advertising and promotions must be conducted in accordance with a plan that you must submit to us.
We have the right to modify your plan and may require you to use a public relations firm to assist with your grand opening.
The grand opening advertising and promotions must occur within the period beginning on the opening of the Franchise Business and ending approximately 4 weeks after the opening of the Franchise Business.
The amount you must spend on grand opening advertising and promotions is separate from and in addition to your other advertising obligations, including local and national marketing.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the grand opening advertising fee, which ranges from $3,000 to $6,000, is due as incurred. This means the franchisee will pay the advertising providers directly as the expenses are incurred during the grand opening period. The grand opening advertising and promotions must occur within the period beginning on the opening of the Franchise Business and ending approximately 4 weeks after the opening of the Franchise Business.
Azal Coffee requires franchisees to spend a specified amount on grand opening advertising and promotions, with the amount ranging from $3,000 to $6,000. The franchisee must submit a plan for these activities to Azal Coffee, who retains the right to modify the plan and may require the franchisee to use a public relations firm.
It's important to note that the grand opening advertising and promotions are separate from and in addition to other advertising obligations, such as local and national marketing. This means franchisees should budget not only for the initial grand opening but also for ongoing marketing efforts. The FDD also states that none of the payments to Azal Coffee are refundable, but the refundability of payments to other parties is determined by the agreements with those parties.