In the event of a Coffee News franchisee's death, what options does the franchisee have regarding the franchise?
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 the franchisee, or the dissolution of the franchisee if it is a corporation, or the death of a person with a substantial interest in the franchise, there are specific options available. The franchisee's heirs can request that Coffee News allow a family member or another officer of the franchisee entity to temporarily operate the franchise.
However, this temporary operation is not guaranteed to become a full-term operation. Coffee News has the sole discretion to approve or disapprove the continuation of the franchise under a family member. Approval is contingent upon the family member demonstrating sufficient skill to successfully operate the Coffee News franchised business.
This clause provides a potential pathway for the continuation of the Coffee News franchise within the franchisee's family, but it ultimately depends on Coffee News's assessment of the successor's ability to manage the business effectively. This is a fairly standard clause in franchise agreements, as franchisors want to ensure that any successor franchisee meets their operational standards to protect the brand.