Does Azal Coffee specify any financial thresholds related to the marketing fund?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
You must spend a minimum of one percent (1%) of Gross Sales per month on 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 described in Section 9.4. We will collect these amounts by electronic funds transfer under Section 4.13. Your minimum local advertising requirement is separate from and in addition to your obli
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must spend a minimum of one percent of gross sales per month on local advertising. Franchisees must provide documentation to Azal Coffee to prove they spent the required amount on local advertising. However, Azal Coffee has the discretion to instead 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 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. These amounts will be collected via electronic funds transfer.
The local advertising requirement is separate from and in addition to the franchisee's obligations to contribute to the marketing fund. Azal Coffee retains the right to incorporate the marketing fund or manage it through a separate entity, and may assign rights and duties related to the fund to this entity. Franchisees consent to the automatic withdrawal of marketing fund fees via electronic funds transfer.