What constitutes a breach or default under the Coffee News franchise agreement regarding unlicensed distribution?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
13. BREACH, DEFAULT AND TERMINATION.
- 13.1 Breach by Franchisee. If Franchisee breaches or defaults under any provision of this Agreement, Franchisor shall have all rights and remedies permitted by law or equity, including, but not limited to, the right of termination. Any termination by Franchisor shall have no effect upon Franchisee's obligation to pay the non-refundable deposit due in accordance with subparagraph 2.1 (a) and/or Schedule A. The forfeiture by Franchisee of such non-refundable deposit in the case of termination shall be liquidated damages and not a penalty. For the purposes of this paragraph, a default or breach shall include, but not be limited to, the following:
- (a) Unlicensed Distribution. The printing or distribution of unlicensed or unauthorized issues of the Periodical, either hardcopies or digital versions.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, a breach or default of the franchise agreement includes the printing or distribution of unlicensed or unauthorized issues of the Periodical, whether in hard copy or digital versions. This means a Coffee News franchisee is obligated to only distribute publications that have been properly licensed and authorized by the franchisor.
This provision protects Coffee News's brand integrity and revenue streams by preventing franchisees from creating and distributing versions of the publication that have not been approved. Unauthorized versions could contain unapproved content, impact advertising sales, or otherwise damage the brand's reputation.
For a prospective franchisee, this underscores the importance of adhering strictly to the guidelines and procedures established by Coffee News for the creation, production, and distribution of the Periodical. Failure to comply with these rules could lead to termination of the franchise agreement and potential legal repercussions.