Does Azal Coffee specify any geographic limitations on how the marketing fund can be used?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We may use the marketing fund to: maximize general public recognition and patronage of the Franchise Marks and Azal Coffee Stores; formulate, develop and produce marketing, advertising, and sales support materials for use by franchisees; conduct marketing, advertising, and promotional programs on a national, regional or local level; provide marketing support services to franchisees; develop, maintain, and support the Franchise Technology and "Digital Marketing" (defined in Section 9.7) for us and/or franchisees; obtain public relations services; obtain marketing and advertising services from third parties to administer, create, distribute, place, publish, or otherwise provide marketing products and services to the marketing fund and to develop and implement Franchise Technology and Digital Marketing; pay the expenses of the marketing fund, including without limitation, salaries and other employment expenses of our marketing staff, administrative costs, overhead, and other expenses we incur in connection with the administration of the marketing fund; and other uses determined in our discretion.
We are not required to spend your marketing fund contributions to place advertising in your market or in any specific media.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the marketing fund can be used on a national, regional, or local level. Azal Coffee has the discretion to determine how the marketing fund is used and is not required to spend contributions in any specific market or media.
Azal Coffee may use the marketing fund to maximize recognition of Azal Coffee stores, develop marketing materials, conduct promotional programs, provide marketing support, develop franchise technology and digital marketing, obtain public relations services, and cover the expenses of administering the fund. This includes salaries, administrative costs, and overhead.
Franchisees are required to contribute to the marketing fund, but Azal Coffee is not obligated to implement or continue the fund. They may suspend or terminate it at their discretion. Franchisees can request an annual report of the fund's receipts and disbursements, but this report may be unaudited and prepared by Azal Coffee. Azal Coffee also has the right to set advertising policies and procedures that franchisees must follow, including limiting marketing to a certain area to avoid directing marketing to another franchisee's area.