What are the consequences for a Coffee News franchisee who fails to pay deposit payments?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise prohibited by law, failure to make payment of either the deposit for additional or weekly fees in accordance with Schedule A for a period of sixty (60) days from the due date may result in the loss of all Franchises and termination of receipt of the Periodical by Franchisee, at the option of Franchisor.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, a franchisee's failure to make payments can lead to significant repercussions. Specifically, if a franchisee fails to pay either the deposit for additional franchises or weekly fees as outlined in Schedule A for a period of sixty days from the due date, Coffee News has the option to take action.
Coffee News can opt to terminate the franchisee's existing franchises. This means the franchisee would lose the rights to operate their Coffee News business. Additionally, Coffee News can cease providing the franchisee with the Coffee News periodical.
It is important for prospective Coffee News franchisees to understand the payment terms and ensure they have sufficient capital to meet their financial obligations. Failure to do so could result in the loss of their franchise and the inability to continue operating their Coffee News business.