In the event of death or permanent incapacity of a Coffee News franchisee, what options are available?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.4 Transfer Upon Death or Permanent Incapacity.
Immediately upon the death or permanent incapacity of the Franchisee or if the Franchisee is a corporation, upon its dissolution or upon the death of any person with a substantial or controlling interest in the Franchise, the Franchisee has the following options:
- a) if requested by the Franchisee's heirs, Franchisor, at its sole discretion, may allow a family member of the Franchisee or another officer of the Franchisee entity continue to temporarily operate the franchise.
Such temporary operation may be converted to a full-term operation, which will be contingent upon Franchisor's approval after said family member has developed sufficient skill necessary to operate the franchised business; or
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, in the event of the death or permanent incapacity of a franchisee, or the dissolution of a corporate franchisee, several options are available. If requested by the franchisee's heirs, Coffee News may, at its sole discretion, allow a family member or another officer of the franchisee entity to temporarily operate the franchise.
This temporary operation can potentially be converted into a full-term operation. However, this conversion is contingent upon Coffee News' approval, which will be based on the family member developing the necessary skills to successfully operate the franchised business.
This clause provides a safety net for the franchisee's family, allowing them to potentially continue the business. However, it's important to note that Coffee News retains the discretion to approve or deny the continuation of the franchise, based on their assessment of the successor's ability to manage the business effectively.