Can the Coffee News franchise agreement be changed without a written document signed by both parties?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Renewal. Franchisee shall have the right to automatically renew this agreement for subsequent four (4) year periods provided that:
- (c) Renewal Terms. The Franchisee hereby agrees that upon renewal, the Franchisee shall comply with the then current Coffee News Franchise Agreement, except that there shall be no additional deposit from the Franchisee. Franchisor shall furnish the Franchisee with a copy of Franchisor's then current Franchise Agreement (and related agreements), which Agreement the Franchisee must execute no later than 3 months prior to the expiration of this Agreement.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
Based on the 2025 Coffee News Franchise Disclosure Document, the franchise agreement can be modified under specific circumstances, particularly upon renewal.
According to the FDD, a franchisee has the right to renew their agreement for subsequent four-year periods. However, upon renewal, the franchisee must comply with the then-current Coffee News Franchise Agreement. This implies that the terms of the franchise agreement can change at the time of renewal. Coffee News is obligated to provide the franchisee with a copy of the updated franchise agreement, which the franchisee must then execute no later than three months before the expiration of the existing agreement.
This condition means that while the core agreement remains in place during its term, franchisees must accept potential modifications to the franchise agreement as a condition of renewal. This is a fairly standard practice in franchising, allowing the franchisor to update the agreement to reflect changes in the market, legal requirements, or the Coffee News business model. Franchisees should carefully review the new agreement to understand any changes to their obligations, fees, or operating procedures.