How are advertising costs handled for Coffee News?

According to Coffee News's 2025 Franchise Disclosure Document, advertising costs are expensed as they are incurred. Specifically, the FDD notes that advertising costs were $41,044 in 2024, $29,523 in 2023, and $38,230 in 2022. This means that Coffee News, Inc. accounts for these expenses during the period they take place rather than capitalizing them.

For a prospective franchisee, this information provides insight into how Coffee News manages its finances at the corporate level. It suggests that Coffee News invests a portion of its resources into advertising and promotion, which could benefit franchisees by increasing brand awareness and attracting customers. The fluctuating advertising expenses over the three years may reflect changes in marketing strategies or overall economic conditions.

It is important to note that these figures reflect the advertising expenses incurred by Coffee News, Inc. and not necessarily the advertising costs that individual franchisees might incur at the local level. Franchisees should inquire about any required or recommended local advertising expenditures and how those are managed and accounted for separately from the corporate advertising expenses.