Does a Coffee News franchisee agree that their interest in the franchised business will not be part of the probate of their estate?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
CESSORS AND ASSIGNMENT.
- 11.1 Successors and Assigns of Franchisor. All rights of Franchisor in this Agreement shall inure to the benefit of Franchisor's successors and assigns.
- 11.2 Nontransferability of Franchisee's Interest. Franchisee agrees that its interest in this Agreement is not transferable and shall not be sold, pledged, hypothecated, assigned or transferred without the express written consent of Franchisor, provided that Franchisor's consent shall not be unreasonably withheld. When a transfer is granted by Franchisor, the transferee franchisee shall execute Coffee News' then current Franchise Agreement and related documents to govern the remaining term of this Agreement.
- 11.3 Ownership Changes. If Franchisee is a corporation or partnership, Franchisee agrees to notify Franchisor of any change in stock ownership or partnership interest in Franchisee while this Agreement is in effect. Any such change which, together with all prior changes, results in a change of the person or persons having control of the entity shall be a transfer subject to the provisions of this paragraph 10 and its subparagraphs.
- 11.4 Transfer Upon Death or Permanent Incapacity.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, a franchisee's interest in the franchise agreement is generally not transferable without the franchisor's written consent. However, the FDD outlines specific procedures to be followed upon the death or permanent incapacity of the franchisee.
Upon the death or permanent incapacity of the franchisee, or dissolution of a corporate franchisee, Coffee News may allow a family member or another officer to temporarily operate the franchise if requested by the franchisee's heirs. This temporary operation can potentially become a full-term operation, subject to Coffee News' approval based on the family member's ability to operate the business.
This clause provides a mechanism for the continuation of the Coffee News franchise, but it does not explicitly state that the franchise interest is excluded from the franchisee's estate. Instead, it outlines a process by which the franchisor may allow a transfer of the franchise rights to a qualified family member or officer, subject to their approval. A prospective franchisee should seek clarification from Coffee News regarding the specific handling of the franchise within their estate planning.