What is the range of Liquidated Damages for Failure to Comply with Obligations that Azal Coffee can charge?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Liquidated Damages for Failure to Comply with Obligations | $100 to $2,500 depending on the violation | On the date specified by us | We have the right to charge liquidated damages if you fail to comply with certain obligations under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees may be charged liquidated damages for failure to comply with obligations under the Franchise Agreement. These damages range from $100 to $2,500, with the specific amount depending on the nature of the violation. Azal Coffee specifies that these damages are due on the date they specify.
This means that if an Azal Coffee franchisee fails to meet certain requirements outlined in the Franchise Agreement, they could be assessed a financial penalty within this range. The exact amount will be determined by Azal Coffee based on the specific violation. It is important for prospective franchisees to carefully review the Franchise Agreement to understand what constitutes a violation and the potential financial consequences.
Franchisees should be aware that these liquidated damages are separate from other fees and potential costs outlined in the FDD, such as audit and inspection expenses, indemnification, and attorneys' fees. Understanding the full scope of potential financial obligations is crucial for making an informed decision about investing in an Azal Coffee franchise.