What does Coffee News consider when determining whether to assess a transfer fee?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisees are able to put more Coffee News publications in operation than Franchisee's licensing fees expect, that is to Franchisee's benefit only. Franchisee's licensing fees do not increase. In the event that Franchisee decides to sell Franchisee's Franchise
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, a transfer fee of $2,900 is assessed when a franchisee sells their franchise. The licensing fees for the new buyer will be based on the number of Coffee News publications in operation at the time of the sale.
This means that if a Coffee News franchisee decides to sell their franchise, the new buyer will be responsible for paying a $2,900 transfer fee to Coffee News. Additionally, the weekly licensing fees that the new buyer will pay will depend on how many Coffee News publications are currently running under the franchise at the time of the sale. This could be a significant factor for potential buyers to consider, as it directly impacts their ongoing operational costs.
For a prospective Coffee News franchisee, this information is important for understanding the costs associated with potentially selling the franchise in the future. It also highlights the importance of building a successful franchise with multiple publications in operation, as this could increase the value of the franchise and potentially justify a higher selling price. The transfer fee is a relatively standard practice in franchising, intended to compensate the franchisor for the administrative costs and efforts involved in approving and onboarding a new franchisee.