Does failure to comply with any requirement of the Coffee News franchise agreement constitute a breach?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
. In no event shall any monies _, 20, which is called the "maturity date." by time without penalty. | | month until he/she have paid all of the | | | described above that he/she may owe ur | |
The Debtor acknowledges and hereby agrees to grant Holder, with any and all the licensed rights to the territory that was granted to Debtor in the foregoing Coffee News Franchise Agreement, to secure the payment set forth in this Promissory Note and to secure the performance of all covenants and agreements contained herein. In the event of a failure to pay interest, principal or any other amount due on this Promissory Note in accordance with its terms, or of a breach of any other covenant, condition or agreement contained herein, remaining uncured for a period in excess of five (5) days (except that no grace period shall be permitted for a default under this Note or the foregoing Coffee News Franchise Agreement), or any breach in the covenants, conditions or agreements in any instrument given in connection with the Promissory Note and debt secured hereby, or if a proceeding in bankruptcy, receivership or insolvency shall be instituted by or against the undersigned, or if the foregoing Coffee News Franchise Agreement for which the parties have entered into this Promissory Note is terminated for any reason, then the entire debt secured hereby, together with all charges to which Holder would be entitled under the Promissory Note or by law if the Promissory Note were prepaid in full, shall be due and payable, Holder shall have the right to realize upon the security granted herein, and the payment and acceptance of any sum on account of this note shall not be considered a waiver of such right of election. The failure at any time of Holder to exercise this option shall not constitute a waiver of
the right to exercise the right at any other time. Upon realizing the security granted herein, Holder has the right and power to sell the Franchise that was granted to Debtor in the foregoing Coffee News Franchise Agreement.
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- If the Promissory Note is not paid when due and shall be placed by the Holder in the hands of any agent or attorney for collection through legal proceedings or otherwise, the undersigned shall pay to the Holder the costs and reasonable expenses of collection, including without limitation, reasonable attorney's fees.
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- This Schedule B and the Promissory Note contained herein shall be governed by and construed according to the laws of the State of Maine.
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Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, failure to comply with the franchise agreement can result in a breach. Specifically, if a franchisee fails to make payments for additional or weekly fees, and this failure continues for 60 days from the due date, Coffee News has the option to terminate the franchise and stop providing the periodical.
Additionally, if a Debtor fails to pay interest, principal, or any other amount due on a Promissory Note, or breaches any covenant, condition, or agreement, and this remains uncured for more than five days, it constitutes a breach. However, there is no grace period for defaults under the Note or the Coffee News Franchise Agreement itself. A breach of agreements related to the Promissory Note, or the institution of bankruptcy, receivership, or insolvency proceedings, also triggers the entire debt becoming due. If the Coffee News Franchise Agreement is terminated for any reason, the debt becomes payable, and the Holder can sell the franchise.
Furthermore, franchisees must comply with Coffee News's Social Media Policies, and failure to do so would also constitute a breach of the agreement. Franchisees are responsible for their own social media content and must comply with all relevant laws and regulations. Coffee News is not liable for a franchisee's social media use and does not monitor compliance, although franchisees must ensure their employees and representatives also adhere to these policies. These policies are subject to change, so franchisees need to stay updated.