When is the Minimum Local Advertising and Advertising Cooperative fee incurred for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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) |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the Minimum Local Advertising and Advertising Cooperative fee is incurred 'As incurred.' This means the fee, which is 1% of monthly Gross Sales, is due as you incur advertising expenses in your local market. Azal Coffee requires you to spend this amount each month on local advertising.
If a franchisee fails to spend the required amount on local advertising, they must pay the equivalent amount to Azal Coffee as additional royalty. Azal Coffee, at its discretion, may use these funds for local advertising and promotion on behalf of the franchisee, including digital advertising, social media, flyers, and mailers, or as part of joint or cooperative advertising efforts.
The FDD also clarifies that the amounts spent on local advertising, joint advertising, cooperative advertising, and any promotional programs specified by Azal Coffee will count toward the minimum local advertising obligations. Except for pre-opening/grand opening advertising and any contributions to the marketing fund that Azal Coffee may require, franchisees are not required to spend more than the specified amounts on these advertising and promotional activities. Franchisees should maintain thorough records of their advertising expenditures to demonstrate compliance with Azal Coffee's requirements.