When does the Coffee News Franchise Agreement term commence?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
3. TERM AND RENEWAL.
- 3.1 Term. The term of this Agreement shall commence upon execution hereof by all parties hereto and shall expire on ______ 31, 20____, subject to earlier termination pursuant to the terms of this Agreement.
- 3.2 Renewal. Franchisee shall have the right to automatically renew this agreement for subsequent four (4) year periods provided that:
- (a) Performance of Obligations. Franchisee has duly performed its obligations hereunder to the satisfaction of Franchisor;
- (b) Agreement In Force. This Agreement is in full force at the end of the term provided for in paragraph 3.1 and Franchisee is not then in breach of any terms hereof:
- (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)
According to the 2025 Coffee News Franchise Disclosure Document, the term of the Franchise Agreement begins upon its execution by all involved parties. The agreement concludes on a specific date, indicated as "______ 31, 20____," but can be terminated earlier if the terms of the agreement are not met.
Franchisees have the option to renew their agreement for additional four-year periods. To qualify for renewal, franchisees must have fulfilled their obligations satisfactorily, and the agreement must be active and without any breaches at the end of its current term.
Moreover, franchisees need to adhere to the current Coffee News Franchise Agreement at the time of renewal, although they won't be required to pay an additional deposit. Franchisees must sign the updated agreement at least three months before the current agreement expires and must notify Coffee News of their intent to renew at least six months before the end of the current term.