When does a Coffee News franchisee begin paying the weekly fee?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
e needs to pay for additional $1,000.00 to us to obtain such extension and hold Franchisee's area for such one or more months before Franchisee pays the full amount due under the Agreement.
- 2.1.4 Weekly Fees. For the first Franchise granted to Franchisee, weekly payments of:
- 2.1.4.1 for hardcopy Periodical, $80 per week beginning upon the conclusion of the Initial Period. In the case of multiple franchises granted to Franchisee under separate licensing agreements, weekly payments of $25 per week for each additional franchise purchased, to be charged for each week beginning after the first nine (9) months of Franchisee's operation in accordance with Schedule A.
- 2.1.4.2 for Coffee News Online Basic Service (as later identify and defined in Paragraph 4.5.1), $25.00 (USD) per week.
- 2.1.4.3 for Coffee News Online Premium Service (as later identified and defined in Paragraph 4.5.2), $50.00 (USD) per week.
- 2.1.4.4 prices for all other countries in addition to the U.S. and Canada shall be based on USD conversion to the respectful local currencies.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the weekly fee schedule depends on the type and number of franchises a franchisee owns. For the initial hardcopy Coffee News franchise, a franchisee will pay $80 per week, starting after the conclusion of the Initial Period. If a franchisee purchases additional Coffee News franchises, the weekly fee is $25 per additional franchise, beginning after the first nine months of operation. For Coffee News Online Basic Service, the weekly fee is $25, while the Premium Service incurs a weekly fee of $50.
It is important to note that the timing of weekly licensing fees is intentionally generous, providing franchisees ample time to establish their region before reaching maximum licensing fees. The FDD also states that initial fees and payments are due upon the franchisor's completion of all pre-opening obligations.
Prospective Coffee News franchisees should carefully consider these payment terms and factor them into their financial projections. Understanding the specific triggers for weekly fee payments, such as the end of the initial period or the first nine months of operation for additional franchises, is crucial for managing cash flow and ensuring timely payments to the franchisor. Franchisees should also be aware of the potential consequences of failing to make timely payments, as this could lead to the loss of franchises and termination of the Periodical supply.