What are the consequences for a Coffee News franchisee if they breach any other contract with the franchisor?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
ove. The Weekly fee is more fully explained in Item 5 of the Franchise Disclosure Document. Initial fees and payments will be due upon Franchisor's completion of all pre-opening obligation.
- 2.2 Failure to Make Payment. 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.
3. TERM AND RENEWAL.
- 3.1 Term. The term of this 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)
Based on the 2025 Coffee News Franchise Disclosure Document, a franchisee's failure to meet their financial obligations, specifically not making payments for additional or weekly fees within sixty days of the due date, may lead to the loss of all franchises and termination of the Periodical receipt. This consequence is at the discretion of Coffee News, meaning they have the option to enforce this or not.
Additionally, a Coffee News franchisee's ability to renew their franchise agreement is contingent upon fulfilling all obligations to Coffee News's satisfaction and not being in breach of any terms at the end of the current term. This indicates that any breach of contract, financial or otherwise, could prevent a franchisee from renewing their agreement. The franchisee must also comply with the current Coffee News Franchise Agreement at the time of renewal.
Furthermore, Coffee News reserves all rights in the Periodical not specifically granted to the franchisee, allowing them full use of these rights or assignment to others. This underscores Coffee News's control over its intellectual property and operational methods, and a franchisee's breach of contract could potentially infringe upon these reserved rights, leading to further consequences.