For a Coffee News franchise, what happens if I designate someone else to manage the business?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
ighted materials.
ITEM 15
OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You or a designated person must use your best efforts in the sale of advertisements and in distributing your editions of Coffee News. You personally are not required to perform the duties necessary to accomplish these goals, but it is recommended. Only signatories to the Franchise Agreement are required to complete the training.
As the owner of the franchise(s), you are responsible for the compliance of all employees with the terms and conditions of the Franchise Agreement including your manager, on- premises supervisor or minority stockholder, if a company. If the franchisee is a company, there is no minimum equity interest required that the on-premises supervisor must have in the company. We do not impose any restriction that you must place on your managerial staff. You may, however, require a non-compete of all employees and a non-disclosure of trade secrets.
We place no other limitations or restrictions on your staff other than those contained in the Item 17.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 24–25)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, franchisees are not required to personally perform all the duties necessary for the business's operation. A franchisee can designate someone else to manage the Coffee News business, focusing on the sale of advertisements and distribution of the publication. While personal involvement is recommended, it is not mandatory.
As the owner of the Coffee News franchise, the franchisee is responsible for ensuring that all employees, including managers, comply with the terms and conditions outlined in the Franchise Agreement. There are no specific restrictions imposed by Coffee News on managerial staff, nor is there a required minimum equity interest for an on-premises supervisor if the franchisee is a company.
However, Coffee News does allow franchisees to implement non-compete agreements and non-disclosure agreements to protect trade secrets. The FDD places no other limitations or restrictions on staff other than those contained in Item 17 and does not require a personal guaranty of performance.