Can Azal Coffee suspend contributions to the marketing fund?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We currently collect 1% of Gross Sales and reserve the right to require that you make periodic contributions to a marketing fund in an amount of up to 3% of your Gross Sales. We are not obligated to implement a marketing fund or to continue the marketing fund, if implemented, and may change the amount or suspend contributions to or operations of the marketing fund or terminate the marketing fund (or reinstate the marketing fund if it is terminated). We intend that all Azal Coffee franchises will contribute to the marketing fund at the same rate. We further intend that our corporate and affiliate owned Stores will contribute to the marketing fund on the same basis as franchisees.
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, Azal Coffee currently collects 1% of gross sales from franchisees, and reserves the right to require contributions of up to 3% of gross sales for a marketing fund. However, Azal Coffee is not obligated to implement or continue the marketing fund.
Azal Coffee has the explicit right to change the amount of contributions, suspend contributions to, or suspend operations of the marketing fund. They can also terminate the marketing fund entirely, or reinstate it if previously terminated.
The FDD states that Azal Coffee intends for all Azal Coffee franchises, including corporate and affiliate-owned stores, to contribute to the marketing fund at the same rate, ensuring equitable contribution across the board.