What documents are required to be executed by the transferee franchisee when a transfer is granted by Coffee News?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
When a transfer is granted by Franchisor, the transferee franchisee shall execute Coffee News' then current Franchise Agreement and related documents to govern the remaining term of this Agreement.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, when a transfer of a franchise is approved, the new franchisee (transferee) must sign Coffee News' current Franchise Agreement and any related documents. These documents will govern the remaining term of the original agreement.
This requirement ensures that all franchisees operate under the same, up-to-date terms and conditions. It protects Coffee News by maintaining uniformity across its franchise system, and it ensures that the new franchisee is fully aware of their obligations and rights.
For a prospective franchisee, this means that if they purchase an existing Coffee News franchise, they will not simply take over the old agreement. Instead, they will enter into a new agreement that reflects the current standards and practices of the Coffee News franchise system. This could include changes in fees, operational requirements, or other terms. Therefore, it is important to carefully review the current Franchise Agreement before completing the purchase of an existing franchise.