What is a condition for a Coffee News franchisee to automatically renew the franchise agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
s Agreement shall commence upon execution hereof by all parties hereto and shall expire on ______ 31, 20____, subject to earlier termination pursuant to the terms of this Agreement.
- 3.2 Renewal. Franchisee shall have the right to automatically renew this agreement for subsequent four (4) year periods provided that:
- (a) Performance of Obligations. Franchisee has duly performed its obligations hereunder to the satisfaction of Franchisor;
- (b) Agreement In Force. This Agreement is in full force at the end of the term provided for in paragraph 3.1 and Franchisee is not then in breach of any terms hereof:
- (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 can automatically renew their agreement for additional four-year periods if they meet certain conditions. One key condition is that the franchisee must have duly performed all of their obligations under the agreement to the satisfaction of Coffee News. This means the franchisee must have met all requirements and responsibilities outlined in the franchise agreement.
Another condition for renewal is that the franchise agreement must be in full force and effect at the end of its current term, as stated in paragraph 3.1 of the agreement. Additionally, the franchisee must not be in breach of any of the agreement's terms at the time of renewal. This implies that the franchisee must be compliant with all aspects of the agreement to be eligible for renewal.
Furthermore, the Coffee News franchisee must agree to comply with the then-current Coffee News Franchise Agreement upon renewal, although they will not be required to pay an additional deposit. Coffee News will provide the franchisee with a copy of the updated agreement, which the franchisee must execute at least 3 months before the expiration of the current agreement. The franchisee must also provide written notice to Coffee News of their intent to renew at least six months before the end of the current term or any renewal term.