Under what condition does Azal Coffee charge Liquidated Damages for Failure to Comply with Obligations?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Liquidated Damages for Failure to Comply with Obligations | $100 to $2,500 depending on the violation | On the date specified by us | We have the right to charge liquidated damages if you fail to comply with certain obligations under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, Azal Coffee has the right to charge franchisees liquidated damages if they fail to comply with certain obligations under the Franchise Agreement. The amount of these damages ranges from $100 to $2,500, depending on the specific violation. These liquidated damages are due on the date specified by Azal Coffee.
This means that if a franchisee breaches any of the obligations outlined in the Franchise Agreement, Azal Coffee can impose a financial penalty. The exact amount will depend on the severity and nature of the breach.
Prospective franchisees should carefully review the Franchise Agreement to understand all of their obligations and the potential consequences of non-compliance, including the specific conditions that could trigger liquidated damages. Understanding these obligations is crucial for avoiding unexpected fees and maintaining a positive relationship with Azal Coffee.