Can Azal Coffee require payments from franchisees more frequently than monthly, or as otherwise provided in the Agreement?

According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee can specify that franchisees make payments more frequently than monthly or as otherwise stated in the agreement. These payments, which 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 provided by Azal Coffee or its affiliates, amounts owed for maintenance expenses, amounts owed for management fees, amounts owed for liquidated damage amounts, and all other amounts owed to Azal Coffee or its affiliates, must be made via electronic or similar funds transfer from the franchisee's bank account.

Azal Coffee specifies that payments must be made at the times listed in the agreement or as they may otherwise specify. The franchisee agrees that Azal Coffee can specify payment by electronic fund transfers that they initiate. The franchisee must sign and deliver the documents necessary to authorize and effectuate fund transfers as specified by Azal Coffee to their bank and to Azal Coffee. The franchisee agrees not to terminate the authorization as long as the agreement is in effect and not to close their bank account without providing prior written notice and establishing a substitute bank account for the transfers.

This means that Azal Coffee has the right to change the payment schedule for franchisees, requiring them to make payments daily, weekly, or at any other interval instead of monthly, if they specify. The FDD also states that Azal Coffee acknowledges that they may require franchisees to make required payments at different intervals than other Azal Coffee franchisees. This gives Azal Coffee considerable flexibility in managing cash flow and ensuring timely payments, but it also introduces a degree of uncertainty for franchisees, as their payment schedule could change.