Is the Coffee News franchisee considered an agent of the Franchisor?

According to the 2025 Coffee News Franchise Disclosure Document, Coffee News franchisees operate as independent contractors and are not considered agents of the franchisor. Specifically, the agreement states that the franchisee is an independent contractor or licensee and not an agent, legal representative, joint venturer, partner, employee, servant, or agent of Coffee News for any purpose. This distinction is important as it clarifies the legal and financial responsibilities of each party.

As independent contractors, Coffee News franchisees are responsible for their own business decisions and operations, including compliance with laws and regulations. They are also responsible for monitoring their own employees, representatives, and agents to ensure compliance with the Coffee News Social Media Policy. Coffee News is not liable for the franchisee's use of social media sites and does not have an obligation to monitor the franchisee's compliance with laws and third-party terms.

This independent contractor status also means that Coffee News franchisees are responsible for indemnifying the franchisor against any claims, losses, or liabilities arising from their business operations. This arrangement is typical in franchising, where franchisees operate their businesses independently while adhering to the franchisor's brand standards and operational guidelines. Franchisees should be aware of their responsibilities and obligations as independent contractors and ensure they have adequate insurance coverage and legal advice to protect their interests.