Is a Coffee News franchisee authorized to create any obligation on behalf of the Franchisor?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
As the Franchisor of the Coffee News franchises, Coffee News USA, Inc. ("Coffee News" or "We") acknowledge that various technology and social media platforms such as Facebook, YouTube, Twitter, blogs, message boards, wikis, social networking services, video and photo sharing websites, etc., are changing the way people interact. The use of the social media to promote businesses is getting more popular than ever. We respect and support Coffee News Franchisees' (or "your") rights to interact with others through social media in a responsible and knowledgeable manner.
In the meantime, Coffee News, as it has always been, is committed to protect its interest including without limitation its Intellectual property rights, the goodwill associated with the Coffee News brand, contractual rights under the Coffee News Franchise Agreement, and the rights not to be harmed by conduct of others whose activities that Coffee News is not legally responsible. Coffee News Social Media Policy (the "Policy") will help the Coffee News franchisees make respectful and appropriate decisions about their interactions with others concerning Coffee News on the Internet. It is acknowledged that both Coffee News Agreement and Coffee News Franchise Disclosure Document contain the governing provisions relating to advertising which cover the use of social media. This Policy provides you with certain guidelines under the advertising provisions.
It is acknowledged that the Franchisees are responsible for their own content posted or published through the social media and are responsible for complying with all laws and regulations and third-party site terms and conditions. Coffee News will not have any liability for the Franchisee's use of social-media sites. Additionally, Coffee News does not have responsibility or obligation for monitoring Franchisee's compliance with such laws, regulations, and third-party terms and conditions. Any approval by Coffee News of the use of social media sites or monitoring thereof does not constitute a representation that the Franchisees are in compliance with these laws, regulations or terms and conditions. The Franchisees are responsible for monitoring their own employees, representatives, agents, etc. to ensure compliance with these requirements set forth in the Policies. Given the constant change and development of the technology, this Policy is subject to change and modification at any time.
WHEREFORE, Coffee News adopts the following Social Media Policies that all Coffee News Franchisees shall follow:
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
Based on the 2025 Coffee News Franchise Disclosure Document, franchisees are generally responsible for their own actions and content, especially in areas like social media. The franchisee is responsible for adhering to all laws and regulations, as well as third-party terms and conditions, when using social media to promote their Coffee News franchise. Coffee News USA, Inc. is not liable for a franchisee's use of social media sites, nor does it have an obligation to monitor a franchisee's compliance with laws, regulations, or third-party terms. Any approval by Coffee News of a franchisee's social media use does not guarantee compliance. Franchisees must ensure their employees, representatives, and agents also comply with these requirements.
Franchisees must be truthful and not misleading in their posts and are expected to follow guidelines if they mention competitors. They are prohibited from posting confidential or proprietary information of Coffee News, commenting on legal or private matters internal to the Coffee News system, or disclosing proprietary information of their clients without permission. Franchisees also need to comply with the 2012 FTC Endorsement Guidelines regarding endorsements and testimonials, disclosing any compensated relationships when promoting products.
Coffee News retains ownership of the goodwill generated from franchisees' social media accounts, reserving the right to the accounts, content, and associated domain names. All rights in the Periodical other than those specifically granted to the Franchisee are reserved by Franchisor. The franchisee must also execute a non-disclosure or confidentiality agreement with its employees, officers, key personnel, agents, or stockholders, as the case may be, that such employees, officers, key personnel, agents, or stockholders, as the case may be, shall be bound by the contractual provisions.