Are there any contractual limitations on the frequency or cost of Azal Coffee's technology obligations?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
le (POS) and Computer Systems
You must acquire and use technology specified by us and in the manner specified by us. Your access to and use of franchise technology is subject to your compliance with the terms and conditions of use and other policies and procedures specified by us. You agree to comply with those terms, conditions, policies and procedures. You must pay all required license fees, service fees, management fees, and support, maintenance, update, and upgrade costs to use and maintain the franchise technology in the manner specified by us. You must pay us or our affiliate a monthly mobile application and technology fee, which is currently $50. The mobile application and technology fee may be used by us for expenses relating to development and maintenance of franchise technology and other expenses relating to technology used in our franchise system. We may change or modify franchise technology in the future, including changes in the specifications and components relating to franchise technology. In that case, you must obtain and begin to use the changed or modified franchise technology within 30 days after you receive written notice from us. There are no contractual limitations on the frequency or cost of these obligations. The franchise technology and its content are provided "AS-IS." We disclaim all warranties with re
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, there are no contractual limitations on the frequency or cost of technology obligations. Azal Coffee franchisees must acquire and use the technology that Azal Coffee specifies. Franchisees are subject to the terms and conditions of use and other policies and procedures that Azal Coffee specifies. Franchisees must also pay all required license fees, service fees, management fees, and costs to maintain the franchise technology.
Azal Coffee franchisees must pay a monthly mobile application and technology fee, which is currently $50. This fee may be used for expenses relating to the development and maintenance of franchise technology and other expenses relating to technology used in the Azal Coffee franchise system. Azal Coffee may change or modify franchise technology in the future, including changes in the specifications and components relating to franchise technology. If this occurs, franchisees must obtain and begin to use the changed or modified franchise technology within 30 days after receiving written notice from Azal Coffee.
This lack of contractual limitations means that Azal Coffee has the right to change technology requirements and associated costs at any time, potentially impacting a franchisee's expenses. Prospective franchisees should carefully consider this open-ended financial obligation and factor it into their business planning. It is important to note that the franchise technology and its content are provided "AS-IS," and Azal Coffee disclaims all warranties with respect to franchise technology.