What is the maximum Mobile Application / Technology Fee that Azal Coffee may charge per month?
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 company currently charges a $50 monthly Mobile Application / Technology Fee. However, Azal Coffee retains the right to increase this fee up to a maximum of $300 per month.
This fee is due on the first business day of each month. Azal Coffee states that the fee will be used for expenses related to the development and maintenance of technology used in their franchise system.
For a prospective Azal Coffee franchisee, this means budgeting for a potential increase in this technology fee over the term of the franchise agreement. It is important to note that while the fee is currently $50, it could increase by up to $250 per month, impacting the overall operating costs of the franchise.