factual

Is the monthly Azal Coffee mystery shopper fee refundable?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

Your obligations for the full and timely payment of the fees described in this Agreement and all other amounts owed to us are absolute and unconditional. You must not delay or withhold payment to us of all or part of those amounts based on our alleged nonperformance or for any other reason or put the fees or other amounts in escrow or setoff against any claims you may allege against us. We may apply any of your payments first to any accrued late charges or interest and then to any delinquent fees or other amounts outstanding before crediting the payment in the manner specified by you or to the current amount due.

Source: Item 22 — CONTRACTS (FDD page 51)

What This Means (2024 FDD)

According to Azal Coffee's 2024 Franchise Disclosure Document, the obligations for the full and timely payment of fees, including mystery shopper fees, are absolute and unconditional. This means that franchisees must not delay or withhold payment of these amounts based on alleged nonperformance by Azal Coffee or for any other reason. Furthermore, franchisees are prohibited from placing these fees in escrow or setting them off against any claims they may have against Azal Coffee.

Azal Coffee retains the right to apply any payments received first to cover accrued late charges or interest and then to any delinquent fees or other outstanding amounts before crediting the payment as specified by the franchisee or to the current amount due. This ensures that any outstanding balances or penalties are addressed before the current payment is allocated.

In practical terms, this policy means that an Azal Coffee franchisee cannot expect a refund of the mystery shopper fees under any circumstances. The franchisee is obligated to pay these fees in full and on time, regardless of any disputes or issues they may have with Azal Coffee. This arrangement is generally unfavorable for franchisees, as it places the risk of non-performance or disputes entirely on their shoulders without recourse to withhold payments as a form of leverage or compensation.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.