Is the initial franchise fee for Azal Coffee uniform across all new franchisees?
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 $25,000 and is intended to be uniform for all new franchisees. This means that Azal Coffee aims to charge the same initial fee to every new franchisee joining the system. This fee is payable in full when the Franchise Agreement is signed and is non-refundable under any circumstances.
In addition to the initial franchise fee, new franchisees must also pay Azal Coffee's affiliate, Wholesale, between $70,000 and $80,000 for the initial supply of various items, including coffee beans, tea, equipment, paper products, syrups, sauces, milk, cups, mugs, branded products, bakery goods, uniforms, and other inventory. This range includes the estimated cost to ship these goods to the franchise location. This payment is also non-refundable and due before opening, immediately upon invoice.
Furthermore, Azal Coffee may charge a non-refundable fee of up to $1,500 for an attorney to review the proposed lease to ensure it meets their requirements. This fee must be paid within 7 days of demand. While the initial franchise fee is stated to be uniform, these additional costs for supplies and lease review should also be considered when evaluating the total initial investment for an Azal Coffee franchise.