How does Coffee News determine the number of franchises an area would represent?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
When you request the areas where you wish to publish, we will determine the number of franchises that the area would represent based on the guidelines in Item 11.2 and Item 12. There is no time limit for an acceptance since all site locations are resolved before you sign an agreement with us.
Prior to purchasing any territories and to signing an agreement with us and to paying the Initial franchise fees, you and we will agree on the boundaries of your exclusive distribution territory that will optimally have a population of 25,000 to 50,000 total and 25 to 40 active restaurants (Franchise Agreement Section 1.1). Since no territory may overlap another, we will research the territory that you wish to service to determine if all or part of it is currently serviced by us or any of our franchises. We usually approve an area where you wish to publish if it does not overlap another where an existing publisher operates. We will also research population and commerce figures to determine the number of people and the number of restaurants that are contained within the proposed territory. This population/restaurant guideline is based on discussions with existing franchises in the U.S. and Canada and considers information from our 5 company-owned franchises. Upon signing the franchise agreement, you will have exclusive rights to distribute your editions of Coffee News within the agreed territory. It is important to note that you may solicit and accept advertisements from any source inside or outside your territory since the agreement limits only your distribution rights.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 17–21)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the determination of franchise numbers in a specific area is based on guidelines outlined in Item 11.2 and Item 12 of the FDD. Before an agreement is signed or initial fees are paid, Coffee News and the prospective franchisee must agree on the boundaries of the exclusive distribution territory.
Coffee News targets a population of 25,000 to 50,000 people and 25 to 40 active restaurants within a territory. To prevent overlap, Coffee News researches the potential territory to confirm it is not already serviced by the company or another franchisee. The franchisor typically approves an area for a new publisher if it does not overlap with an existing publisher's territory.
Population and commerce figures are researched to determine the number of people and restaurants within the proposed territory. This guideline is informed by discussions with current Coffee News franchisees in the U.S. and Canada, as well as data from the company's five company-owned franchises. Upon signing the franchise agreement, the franchisee gains exclusive rights to distribute Coffee News editions within the agreed-upon territory. However, franchisees can solicit and accept advertisements from sources both inside and outside their territory, as the agreement only restricts distribution rights.