What is the maximum Product and Supplier Approval Fee that Azal Coffee may charge?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit and | Cost of audit or | On receipt of our | This cost must be paid if |
| Inspection Expenses | inspection plus employee expenses | billing | the audit is necessary because of your failure to furnish reports or financial information, or the audit discloses an understatement of 2% or more of Gross Sales. |
| Product and Supplier Approval Fee | Up to $3,000 | Before approval of a product or supplier | You may be required to pay this fee if you request that we approve a product or supplier. |
| Data Security Consultant and Cyber Insurance Costs | Cost of engaging vendor or of cyber insurance policy | Periodically by EFT that we initiate | We may require you to pay for a consultant on data security and/or for a cyber insurance policy. We don't currently impose these requirements but reserve the right to do so in the future. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, a franchisee may be required to pay a Product and Supplier Approval Fee if they request approval for a new product or supplier. This fee can be up to $3,000.
This means that if an Azal Coffee franchisee wants to use a product or supplier that is not already approved by the franchisor, they may have to pay a fee to have it evaluated and approved. The fee covers the cost for Azal Coffee to assess whether the proposed product or supplier meets their standards.
It is important for prospective franchisees to consider this potential cost when evaluating the overall investment required to start and operate an Azal Coffee franchise. Franchisees should inquire about the typical circumstances that would require product or supplier approval and how frequently the maximum fee is charged.