When is the Mobile Application / Technology Fee due for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Picture_0.jpeg)
| 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 Mobile Application / Technology Fee is due on the 1st business day of each month. The fee is currently $50 per month, but Azal Coffee reserves the right to increase it up to $300 per month.
This fee covers expenses related to the development and maintenance of technology used in the Azal Coffee franchise system. As a prospective franchisee, it's important to note that this fee can increase over the term of the franchise agreement, potentially impacting your monthly expenses.
Franchisees should budget for the possibility of this increase and factor it into their financial projections. It is also advisable to inquire with Azal Coffee about the specific technologies covered by this fee and any planned future developments that might justify an increase.