When is the Inventory and Equipment fee due for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Minimum Local Advertising and Advertising Cooperative | 1% of monthly Gross Sales | As incurred | You must spend this amount each month on advertising in your local market. (3) |
| Mobile Application / Technology Fee | Currently $50 per month, but we reserve the right to charge up to $300 per month. | On the 1st business day of each month | This fee may increase over the term of your franchise agreement and will be used by us for expenses relating to the development and maintenance of technology used in our franchise system. |
| Inventory and Equipment | Varies | On receipt of billing | You are required to purchase your initial and ongoing supply of certain inventory and equipment items from us or our affiliates. |
| Point-of-Sale System Fee | Not currently assessed | On receipt of billing | We do not currently, but reserve the right to, require you pay us each month for licensing and management fees associated with your point-of-sale system that we will distribute to the appropriate third-party vendors. |
| Maintenance, Repairs, Renovation, and Modernization | Not more than $75,000 every 5 years | As incurred | Maintenance, repair, renovation, and modernization fees are payable to us only if you do not perform required maintenance, repairs, renovation, and modernization.(4) |
| Mystery Shopper Fee | Actual cost to us | 5th day of each month | We will use these fees to administer a program to evaluate and report on the operations of our franchisees and to otherwise support the uniformity and quality of operati |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the Inventory and Equipment fee is due upon receipt of billing. This means that Azal Coffee franchisees are required to purchase their initial and ongoing supply of certain inventory and equipment items from Azal Coffee or its affiliates.
The amount of the Inventory and Equipment fee varies, so prospective franchisees should inquire about the estimated costs for their specific location and needs. This fee covers essential items necessary to operate the Azal Coffee franchise, ensuring brand consistency and quality.
Franchisees should budget accordingly to ensure they can promptly pay the Inventory and Equipment fee upon receiving the bill to maintain a smooth supply chain and avoid any disruptions to their business operations. Understanding the timing and potential variability of this fee is crucial for managing cash flow and financial planning as an Azal Coffee franchisee.