Does the Coffee News agreement state that the parties are familiar with the operations of Coffee News franchises?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties to this Agreement agree and acknowledge that they are familiar with the present and proposed operations of "Coffee News" Franchises and believe that the restrictive covenants in this Agreement are reasonable with respect to their subject matter, duration, and geographical application.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the franchise agreement states that both parties, the franchisor and franchisee, acknowledge they are familiar with the operations of Coffee News franchises. Specifically, the agreement indicates that both parties understand and agree that they are familiar with the present and proposed operations of Coffee News franchises.
This acknowledgement is significant because it implies that the franchisee has had the opportunity to review and understand how a Coffee News franchise operates before entering into the agreement. It also suggests that the franchisee believes the restrictive covenants within the agreement are reasonable in terms of their subject matter, duration, and geographical scope.
This clause likely aims to prevent franchisees from later claiming they were unaware of the operational requirements or restrictions of the franchise. By agreeing to this statement, a prospective Coffee News franchisee confirms they have done their due diligence and understand the nature of the business they are entering.