Under what conditions must an Azal Coffee franchisee pay a transfer fee?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must make payments to Azal Coffee for various fees, including transfer fees. These payments must be made via electronic or similar funds transfer from the franchisee's bank account to Azal Coffee's accounts. The 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 franchisees must sign and deliver the necessary documents to authorize these fund transfers. Franchisees agree not to terminate this authorization while the agreement is in effect and not to close their bank account without providing prior written notice and establishing a substitute bank account. Azal Coffee may also require franchisees to make payments daily, weekly, or at some other interval instead of monthly, and may require different payment intervals from different Azal Coffee franchisees.
The franchisee's obligation to pay fees, including transfer fees, is absolute and unconditional. Franchisees cannot delay or withhold payment based on alleged nonperformance by Azal Coffee or for any other reason, nor can they put the fees in escrow or setoff against any claims. Azal Coffee can 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.