When does the Coffee News franchisee need to pay the postponement fee?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
ne"). A onetime enrollment fee to participate publication of Coffee News Online, in the amount of $100.00 for Chil Consulting and $75.00 for Shadowfox Design, shall be paid upon enrollment.
- 2.1.3 Postponement Fees. In the event that Franchisee wishes to postpone the start date of Franchisee's business by one month or more, Franchis
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, a franchisee must pay a postponement fee if they wish to delay the start date of their business by one month or more. This fee amounts to $1,000.00, which is paid to Coffee News to secure the extension and hold the franchisee's designated area during the postponement period. This payment must be made before the franchisee pays the full amount due under the Franchise Agreement.
In essence, this postponement fee acts as a form of compensation to Coffee News for the period they reserve the territory for the franchisee without the franchisee actively operating the business. It ensures that Coffee News is compensated for the delay and that the territory remains exclusively held for the franchisee during the extended pre-opening phase.
For a prospective Coffee News franchisee, this means that if unforeseen circumstances arise that prevent them from starting their business on the initially agreed-upon date, they have the option to postpone. However, this postponement comes at a cost of $1,000.00 per month of delay. Franchisees should carefully consider their readiness and potential risks before committing to a start date to avoid incurring this additional fee. It is also important to factor this potential cost into their initial budget and business plan.