Is the initial franchise fee negotiable for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
INITIAL FEES**
You must pay an initial franchise fee of $25,000 for an Azal Coffee franchise. The initial franchise fee is payable in full at the time you sign the Franchise Agreement.
All initial franchise fees are earned at the time of payment and are not refundable under any circumstances. Initial franchise fees are uniform. It is our intent to charge all new franchisees the same initial franchise fee.
You must also pay our affiliate, Wholesale $70,000 to $80,000 for your initial supply of coffee beans, tea, coffee and tea mixes, equipment, paper products, syrups, sauces, milk, cups, mugs, branded products, coffee supplies, bakery goods, uniforms, and other inventory items. This range also includes the estimated cost to ship the goods to your Franchise Location. You must pay this fee before you open and immediately upon invoice. This payment is not refundable.
As part of our lease approval process, we may have an attorney review the proposed lease to ensure that the proposed lease meets our requirements. We will have a right to charge you a non-refundable fee up to $1,500 to cover the cost of that review. You must pay this fee within 7 days of demand. This payment is n
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the initial franchise fee is not negotiable. The FDD states that the initial franchise fee is $25,000, payable in full when signing the Franchise Agreement. Azal Coffee explicitly states that the initial franchise fees are uniform and that it intends to charge all new franchisees the same initial franchise fee.
This means that all new Azal Coffee franchisees will be required to pay the same $25,000 initial franchise fee. A prospective franchisee cannot negotiate for a lower fee. This policy ensures that Azal Coffee treats all new franchisees equally in terms of initial investment.
In addition to the initial franchise fee, new franchisees must also pay Azal Coffee's affiliate between $70,000 and $80,000 for the initial supply of goods and inventory. Franchisees may also have to pay a non-refundable fee of up to $1,500 for lease review. These fees, like the initial franchise fee, are non-refundable.