How are payments to Azal Coffee required to be made?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You must make all payments to us by electronic funds transfers (automatic bank transfers). You must install, at your expense, and use pre-authorized payment and computerized point-of-sales systems, credit verification systems, automatic payment systems, electronic funds transfer systems, or automatic banking systems as we may specify. We may specify these requirements to fulfill any business purpose reasonably related to the operation of your Store and the Franchise Systems and to allow us to access reports of Gross Sales and other information and to initiate electronic or other transfers of all payments you are required to make to us. We may specify that any or all required payments to us be made daily, weekly, monthly, or another interval, instead as otherwise provided in the Franchise Agreement. We may require you to make required payments at different intervals than other franchisees.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are required to make all payments to Azal Coffee via electronic funds transfers, specifically through automatic bank transfers. To facilitate these payments, franchisees must install and use pre-authorized payment systems, computerized point-of-sales systems, credit verification systems, automatic payment systems, electronic funds transfer systems, or automatic banking systems, all at their own expense. The specific systems used must be those specified by Azal Coffee.
Azal Coffee specifies these payment and reporting requirements to maintain oversight of the franchise's operations, access reports of Gross Sales and other pertinent information, and initiate electronic transfers for all required payments. This level of control allows Azal Coffee to monitor the financial performance of each franchise and ensure timely collection of fees.
Azal Coffee retains the right to dictate the frequency of payments, whether daily, weekly, monthly, or at any other interval, regardless of what is outlined in the Franchise Agreement. Furthermore, Azal Coffee can impose different payment schedules on different franchisees, meaning that payment terms may not be uniform across the franchise system. This gives Azal Coffee considerable flexibility in managing cash flow from its franchisees.