Is the deposit for additional Coffee News franchises refundable?

According to the 2025 Coffee News Franchise Disclosure Document, the deposit for additional franchises is not refundable. Specifically, for any additional franchises granted to a franchisee under a separate licensing agreement, Coffee News requires a non-refundable deposit of $7,000.00. This deposit is to be paid in accordance with Schedule A of the agreement.

This non-refundable deposit has significant implications for existing Coffee News franchisees looking to expand their operations. If a franchisee decides to purchase additional territories, they must be prepared to lose the $7,000 deposit, regardless of whether they ultimately proceed with the new franchise. This policy could discourage franchisees from acquiring additional locations, especially if they are uncertain about the new market or their ability to manage multiple franchises.

In the franchise industry, it is common for franchisors to have non-refundable fees to cover their initial costs and efforts in setting up a new franchise. However, the specific terms and amounts can vary widely. Prospective Coffee News franchisees should carefully consider this non-refundable deposit and factor it into their financial planning when considering expanding their business with additional franchise locations. They may also want to inquire about the reasons for the non-refundable nature of the deposit and whether there are any circumstances under which it might be waived or credited.