When must the Azal Coffee transfer fee be paid, and is it refundable?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
h break-out session time slot, and the dinner/awards banquet.
4.13 Manner and Timing of Payment.
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.
4.14 No Setoff; Application of Payments.
Your obligations for the full and timely payment of the fees described in this Agreement and all other amounts owed to us are absolute and unconditional. You must not delay or withhold payment to us of all or part of those amounts based on our alleged nonperformance or for any other reason or put the fees or other amounts in escrow or setoff against any claims you may allege against us. We may apply any of your payments first to any accrued late charges or interest and then to any delinquent fees or other amounts outstanding before crediting the payment in the manner specified by you or to the current amount due.
4.15 Payment of Other Amounts Owed by You or Your Affiliates.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the timing and manner of payment for the transfer fee, like other fees, must be made via electronic or similar funds transfer from the franchisee's bank account to Azal Coffee's accounts. These payments must be made at the times specified in the Franchise Agreement or as otherwise specified by Azal Coffee. Azal Coffee may specify payment by electronic fund transfers that they initiate and may require payments daily, weekly, or at some other interval, even if the agreement specifies monthly payments. Azal Coffee can also require different payment intervals from different franchisees.
The Azal Coffee Franchise Agreement stipulates that the franchisee's obligation to pay fees is absolute and unconditional. Franchisees cannot delay or withhold payments based on alleged nonperformance by Azal Coffee or offset the fees against any claims they may have against Azal Coffee. Azal Coffee has the discretion to apply payments first to any accrued late charges or interest and then to any delinquent fees before crediting the payment to the current amount due.
The excerpt from the 2024 FDD does not specify whether the transfer fee is refundable. As the FDD does not explicitly state the transfer fee's refundability, prospective franchisees should seek clarification from Azal Coffee regarding the conditions under which a transfer fee might be refundable. This information is crucial for understanding the financial implications of transferring ownership and the potential for recovering the fee under certain circumstances.