What is the dependency for the Coffee News franchisee to renew the franchise agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- (d) Notice. Franchisee must give written notice to Franchisor of its exercise of its option to renew at least six (6) months prior to the end of the first term, or at least six (6) months prior to the end of the first term of any renewal thereof.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, a franchisee's ability to renew their franchise agreement is contingent upon several factors. The initial term of the agreement commences upon execution and expires on a specified date, subject to earlier termination based on the agreement's terms.
To renew the agreement for subsequent four-year periods, the franchisee must have duly performed all obligations to the satisfaction of Coffee News. Additionally, the agreement must be in full force at the end of the current term, and the franchisee must not be in breach of any terms.
Furthermore, upon renewal, the franchisee must comply with the then-current Coffee News Franchise Agreement, although no additional deposit is required. Coffee News will provide the franchisee with a copy of the updated agreement, which the franchisee must execute at least three months before the expiration of the current agreement. The franchisee must also provide written notice to Coffee News of their intent to renew at least six months before the end of the current term.