When must the renewal fee be paid by an Azal Coffee franchisee?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Your payments to us for royalty, local advertising fees, marketing fund contributions, mobile application and technology fees, training, renewal and transfer fees, management fees, mystery shopper fees, relocation fees, litigation expenses, late charges and interest, amounts owed for products or services provided by us or our affiliates, amounts owed for maintenance expenses we incur under Section 8.8, amounts owed for management fees, amounts owed for liquidated damage amounts, and all other amounts you owe to us or our affiliates must be made by electronic or similar funds transfer in the appropriate amounts from your bank account to our accounts, and at the places or in the manner we may specify. You must make payments at the times specified in this Agreement or as we may otherwise specify. You agree that we may specify payment by electronic fund transfers that we initiate. You must sign and deliver to your bank and to us the documents necessary to authorize and effectuate fund transfers as specified by us. You agree not to terminate the authorization as long as this Agreement is in effect. You agree not to close your bank account without providing us prior written notice and establishing a substitute bank account for the transfers. You also agree to make all required payments to us daily or weekly or at some other interval, instead of monthly or as otherwise provided in this Agreement, if we specify. You acknowledge that we may require you to make required payments at different intervals than other Azal Coffee franchisees.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the timing of renewal fee payments is determined by the franchise agreement or as otherwise specified by Azal Coffee. Payments for various fees, including renewal fees, must be made via electronic or similar funds transfer from the franchisee's bank account to Azal Coffee's accounts. These payments must be made at the times specified in the agreement or as otherwise directed by Azal Coffee.
Azal Coffee may specify payment by electronic fund transfers and can require franchisees to authorize these transfers. Franchisees must not terminate this authorization while the agreement is in effect and must provide notice before closing their bank account. Azal Coffee can also require payments to be made daily, weekly, or at other intervals instead of monthly, and may require different payment intervals from different Azal Coffee franchisees.
This means that prospective Azal Coffee franchisees need to carefully review their franchise agreement and any additional instructions from Azal Coffee to understand the exact due dates and methods for paying the renewal fee. The franchisee should also be aware that Azal Coffee has the right to change the payment schedule and method, potentially requiring more frequent payments than initially anticipated. Franchisees must maintain an active bank account authorized for electronic transfers to ensure timely payments and avoid any potential defaults.