Can the failure to pay weekly fees for Coffee News result in termination of receipt of the periodical?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.2 Failure to Make Payment. Unless otherwise prohibited by law, failure to make payment of either the deposit for additional or weekly fees in accordance with Schedule A for a period of sixty (60) days from the due date may result in the loss of all Franchises and termination of receipt of the Periodical by Franchisee, at the option of Franchisor.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, failure to pay weekly fees can indeed lead to termination of the periodical. Specifically, if a franchisee fails to make payment of weekly fees, as outlined in Schedule A, for a period of sixty (60) days from the due date, Coffee News has the option to terminate the franchisee's receipt of the periodical and potentially lead to the loss of all franchises.
This clause underscores the importance of maintaining timely payments to Coffee News. For a prospective franchisee, this means ensuring sufficient cash flow management to cover the ongoing weekly fees. The 60-day grace period offers some leeway, but consistently late payments could jeopardize the franchisee's standing and business operations.
It is important for potential Coffee News franchisees to fully understand the payment terms and obligations detailed in Schedule A, as referenced in Item 5 of the FDD. Understanding these terms and planning accordingly is crucial for maintaining a healthy business relationship with Coffee News and avoiding potential disruptions to the supply of the periodical, which is the core product of the franchise.