What action does Coffee News take after a franchisee proposes a new territory?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
You may acquire additional franchise territories by proposing territories to us and we will research and tailor the boundaries of the proposed territory.
We will review and approve your proposed territory in a timely manner.
Prior to purchasing any territories and to signing an agreement with us and to paying the Initial franchise fees, you and we will agree on the boundaries of your exclusive distribution territory that will optimally have a population of 25,000 to 50,000 total and 25 to 40 active restaurants (Franchise Agreement Section 1.1). Since no territory may overlap another, we will research the territory that you wish to service to determine if all or part of it is currently serviced by us or any of our franchises. We usually approve an area where you wish to publish if it does not overlap another where an existing publisher operates. We will also research population and commerce figures to determine the number of people and the number of restaurants that are contained within the proposed territory. This population/restaurant guideline is based on discussions with existing franchises in the U.S. and Canada and considers information from our 5 company-owned franchises.
Source: Item 12 — Territory (FDD pages 21–22)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, when a prospective franchisee proposes a territory, Coffee News will research and tailor the boundaries of the proposed territory. Additionally, prior to signing an agreement or paying initial franchise fees, Coffee News and the franchisee will agree on the boundaries of the exclusive distribution territory.
Coffee News will research the territory to determine if it overlaps with any existing franchises. The FDD states that Coffee News usually approves an area if it does not overlap with another where an existing publisher operates. They will also research population and commerce figures to determine the number of people and restaurants within the proposed territory.
This process is important for prospective franchisees as it ensures that the territory is viable and does not infringe upon existing franchisees. The population guideline is based on discussions with existing franchisees in the U.S. and Canada and considers information from Coffee News's company-owned franchises. This thorough research helps to establish a strong foundation for the new franchise and maintain harmonious relations among franchisees.