What is the consequence of failing to make timely payments for a Coffee News franchise?

According to the 2025 Coffee News Franchise Disclosure Document, if a franchisee fails to make payments, several consequences may occur. Specifically, if a franchisee fails to pay the deposit for additional franchises or weekly fees within sixty days of the due date, Coffee News has the option to terminate all franchises and stop providing the periodical. This could result in a significant loss of business and revenue for the franchisee.

Furthermore, the Debtor (franchisee) grants the Holder (Coffee News) the licensed rights to the territory granted in the Coffee News Franchise Agreement to secure the payment outlined in the Promissory Note. If the franchisee fails to pay interest, principal, or any other amount due, or breaches any agreement, and it remains uncured for more than five days (with no grace period for defaults under the Note or Franchise Agreement), the entire debt becomes immediately due. Coffee News then has the right to realize upon the security granted, including selling the franchise.

These terms highlight the importance of maintaining timely payments to Coffee News to avoid potential franchise termination and financial repercussions. Prospective franchisees should carefully consider their financial stability and ability to meet ongoing payment obligations before entering into a franchise agreement with Coffee News. It is also important to note that the failure of Coffee News to exercise its rights at any time does not constitute a waiver of its right to do so at any other time.