Is an additional deposit required from the Coffee News franchisee upon renewal?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Renewal Terms. The Franchisee hereby agrees that upon renewal, the Franchisee shall comply with the then current Coffee News Franchise Agreement, except that there shall be no additional deposit from the Franchisee. Franchisor shall furnish the Franchisee with a copy of Franchisor's then current Franchise Agreement (and related agreements), which Agreement the Franchisee must execute no later than 3 months prior to the expiration of this Agreement.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, a franchisee is not required to pay an additional deposit when renewing their franchise agreement. The standard term for a Coffee News franchise agreement is four years, with an automatic renewal option available to franchisees who have met their contractual obligations and are not in breach of the agreement terms.
To renew their agreement, a Coffee News franchisee must provide written notice to the franchisor at least six months before the current term expires. The franchisee must also agree to comply with the then-current Coffee News Franchise Agreement, which the franchisor will provide at least three months prior to the expiration date.
This renewal process is fairly standard in the franchise industry, as it allows both the franchisee and franchisor to continue their relationship under updated terms without incurring additional initial costs. The absence of a renewal deposit can be seen as a benefit for existing Coffee News franchisees, reducing the financial burden associated with continuing the business.