Is the Coffee News franchisee considered a servant of the Franchisor?

According to Coffee News's 2025 Franchise Disclosure Document, a franchisee is explicitly defined as an independent contractor or licensee and not a servant of the franchisor. Specifically, Item 23 states that the franchisee is 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 both parties.

As an independent contractor, the Coffee News franchisee is responsible for their own business decisions and operations, including compliance with laws and regulations. They are not subject to the same level of control as an employee. This independence allows the franchisee to manage their business according to their own strategies, within the guidelines set by the franchise agreement.

This independent contractor status also means that the franchisee is responsible for their own liabilities and obligations. The franchisee is required to indemnify Coffee News against any claims, losses, or expenses arising from the operation of their Coffee News franchise. This arrangement is typical in franchising, where franchisees operate their businesses independently while benefiting from the franchisor's brand and system.