What is the amount due to prepare the Coffee News agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| INITIAL FRANCHISE FEE | $9,900.00 | LUMP SUM | $500.00 FOR US TO PREPARE THE AGREEMENT; AND BALANCE AT SIGNING OF AGREEMENT | US |
Source: Item 7 — Estimated Initial Investment (FDD pages 12–14)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, an initial payment of $500.00 is required for Coffee News to prepare the franchise agreement. This amount is part of the total initial franchise fee of $9,900.00. The remaining balance of the initial franchise fee is due upon signing the agreement.
This initial payment is a prerequisite for Coffee News to begin drafting the franchise agreement, indicating a commitment from the prospective franchisee before the full agreement is finalized and signed. It's important to note that the FDD states all fees mentioned are non-refundable, so a prospective franchisee should be certain before making this initial payment.
Franchisors often require an upfront payment to cover the costs associated with preparing legal documents and initiating the franchise process. The initial franchise fee for Coffee News is $9,900.00, which is relatively low compared to many other franchise systems, where initial fees can range from $20,000 to $50,000 or higher. This lower initial investment may make Coffee News an attractive option for entrepreneurs with limited capital.