Will Azal Coffee review my proposed local advertising?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ll those excess expenditures.
You must spend a minimum of 1% of Gross Sales each month for advertising in your local market. You must provide us with documentation, at the times and in the form and manner specified by us, to prove that you spent the required amount on local advertising, or in our discretion, we may require you to pay the minimum local advertising amounts to us for advertising in your local market. If we require you to pay the minimum local advertising amounts to us, we may use these amounts, in our discretion, for local advertising and promotion for you (including but not limited to Digital Advertising, flyers, promotions, mailers, etc.) or as part of joint advertising or cooperative advertising. If you fail to pay these amounts in your local market, you are required to remit the amounts to us as additional royalty. Your minimum local advertising requirement is separate from and in addition to your obligations for grand opening advertising and for contributions to the marketing fund. If we require you to pay the minimum local advertising
amounts to us, we will submit to you, on request, an annual report of the receipts and disbursements of those amounts, which may be unaudited and prepared by us.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are required to spend a minimum of 1% of gross sales each month on local advertising. Franchisees must provide documentation to Azal Coffee to prove they spent the required amount. Alternatively, Azal Coffee has the discretion to require franchisees to pay the minimum local advertising amounts to them directly for advertising in the local market.
If Azal Coffee requires the franchisee to pay the minimum local advertising amounts to them, Azal Coffee may use these amounts for local advertising and promotion for the franchisee, including digital advertising, flyers, promotions, and mailers, or as part of joint or cooperative advertising. Upon request, Azal Coffee will submit to the franchisee an annual report of the receipts and disbursements of those amounts, which may be unaudited and prepared by Azal Coffee.
It is important to note that the minimum local advertising requirement is separate from and in addition to obligations for grand opening advertising and contributions to the marketing fund. If a franchisee fails to pay these local advertising amounts, they are required to remit the amounts to Azal Coffee as additional royalty.