When renewing an Azal Coffee franchise, what agreement must be signed and delivered to the franchisor?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
4.13 Manner and Timing of Payment.
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 au
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, to renew the franchise for an additional term of five years, a franchisee must sign and deliver documents to authorize and effectuate fund transfers as specified by Azal Coffee. This is to ensure that all payments to Azal Coffee are made via electronic or similar funds transfer. These payments include royalties, 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, maintenance expenses, liquidated damage amounts, and all other amounts owed to Azal Coffee or its affiliates.
In addition to signing and delivering documents for electronic fund transfers, the franchisee must meet several other conditions to be eligible for renewal. These conditions include not being in default under any agreement with Azal Coffee or its affiliates, not having received two or more notices of default within the last 36 months, providing written notice of intent to continue as a franchisee within a specified timeframe, maintaining possession of the franchise location or securing suitable alternative premises, agreeing to make the franchise business comply with current appearance and trade dress requirements, satisfying all material reporting requirements and monetary obligations, and satisfying any current training requirements for new or existing franchisees.
It is important to note that Azal Coffee may not uniformly impose refurbishing obligations on renewal of franchises and may require a franchisee to take steps to refurbish the Franchise Location that it has not required of other franchisees. This highlights the importance of communication and negotiation with Azal Coffee during the renewal process to understand specific requirements and expectations.