When is the royalty payment due to Azal Coffee each month?
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 royalty payments, along with other fees, is determined by the specific terms outlined in the Franchise Agreement or as otherwise specified by Azal Coffee. Payments for royalty fees, 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 any 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 has the authority to specify the manner and location of these payments. While the agreement may initially specify monthly payments, Azal Coffee reserves the right to require payments on a daily, weekly, or any other interval. This means that a franchisee's payment schedule can be altered at Azal Coffee's discretion, potentially requiring more frequent payments than initially anticipated.
Prospective franchisees should be aware that Azal Coffee may require different payment intervals from different franchisees. It is crucial for potential franchisees to clarify the exact payment schedule and understand the conditions under which Azal Coffee might change the payment frequency. This flexibility in payment timing underscores the importance of maintaining a strong cash flow and a close relationship with Azal Coffee to anticipate and accommodate any changes in payment requirements.