What page number discusses the 'Mobile Application and Technology Fee' for an Azal Coffee franchise?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
4.4 Mobile Application and Technology Fee.
You must pay us a mobile application and technology fee, which amount is currently fifty dollars ($50.00) per month. The mobile application and technology fee must be paid to us on the first business day of each month in the manner specified in Section 4.13. We reserve the right to increase the mobile application and technology fee to up to three hundred dollars ($300.00) per month upon written notice to you. The mobile application and technology fee will be used by us for expenses relating to the administration and maintenance of technology used in our Franchise System. The mobile application and technology fee is not refundable. Although you must pay the mobile application and technology fee to us, you will still be responsible for any license fees and the expense of maintenance and updates, including service contracts, relating to point of sale ("POS") computer system software and other technology used in the Franchise Business. In addition to the mobile application and technology fee, we may collect from you and pay to third parties initial set-up and ongoing licensing fees for any Franchise Technology provided by third parties. We may also charge you a fee to manage any Franchise Technology provided by third parties, which shall be in addition to the mobile application and technology fee. These fees must be paid in the manner specified in Section 4.13 by the 1st day of each month (or at such other times as we may specify). We do not currently, but reserve the right to require that you pay us or our affiliates an administrative fee for administering franchise and marketing programs for the Franchise System. We reserve the right to increase the administrative fee in our sole and complete discretion. The administrative fee must be paid in the matter specified in Section 4.13 by the 1st day of each month (or at such other times as may be specified by us).
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to the 2024 Azal Coffee Franchise Disclosure Document, the mobile application and technology fee is discussed in Item 22, Section 4.4. While the specific page number is not explicitly stated, Item 22 begins on page 77.
The mobile application and technology fee is currently $50 per month, due on the first business day of each month. Azal Coffee retains the right to increase this fee up to $300 per month with written notice. This fee is earmarked for the administration and maintenance of technology used within the Azal Coffee Franchise System and is non-refundable.
Even with the mobile application and technology fee, franchisees are still responsible for license fees, maintenance, and updates for their point of sale (POS) systems and other technology. Azal Coffee may also collect and remit initial set-up and ongoing licensing fees to third-party providers of Franchise Technology, and may charge an additional fee for managing this third-party technology, on top of the standard mobile application and technology fee.
Prospective Azal Coffee franchisees should be aware of these multiple layers of technology-related costs, including the base mobile application fee, potential increases, direct POS expenses, and possible third-party technology management fees. It would be prudent to clarify the current and anticipated technology requirements and associated costs with Azal Coffee to fully understand the financial implications.