Does V60 pay royalty, marketing, or technology fees to Azal Coffee?

According to Azal Coffee's 2024 Franchise Disclosure Document, V60, an affiliate of Azal Coffee, does not pay royalty, marketing, or technology fees to Azal Coffee. This information is disclosed within Item 19, which covers financial performance representations. The FDD clarifies that the gross sales figures presented for V60's store in Dearborn, Michigan, are revenues before deductions for sales tax and tips, but net of discounts, rewards, comps, returns, and employee meals.

This is a notable point for prospective Azal Coffee franchisees because it provides transparency regarding the financial relationship between the affiliate and the franchisor. Typically, franchisees are required to pay ongoing fees such as royalties and marketing contributions, which are used to support the franchise system. The fact that V60 does not pay these fees may reflect a different arrangement due to its affiliate status.

However, the FDD also cautions that a franchisee's individual results may differ significantly from those of V60. The document emphasizes that there is no assurance that a franchisee will earn as much as V60, and gross sales should not be relied upon to calculate profitability. Prospective franchisees should carefully consider all associated fixed and variable costs, including those described in Items 6 and 7 of the FDD, such as the royalty fee, marketing fund fees, and technology fees that franchisees are required to pay. Consulting with financial advisors is strongly recommended to estimate these additional expenses accurately.