How does a Coffee News franchisee renew their franchise term?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Renewal. Franchisee shall have the right to automatically renew this agreement for subsequent four (4) year periods provided that:
- (a) Performance of Obligations. Franchisee has duly performed its obligations hereunder to the satisfaction of Franchisor;
- (b) Agreement In Force. This Agreement is in full force at the end of the term provided for in paragraph 3.1 and Franchisee is not then in breach of any terms hereof:
- (c) Renewal Terms. The Franchisee hereby agrees that upon renewal, the Franchisee shall comply with the then current Coffee News Franchise Agreement, except that there shall be no additional deposit from the Franchisee. Franchisor shall furnish the Franchisee with a copy of Franchisor's then current Franchise Agreement (and related agreements), which Agreement the Franchisee must execute no later than 3 months prior to the expiration of this Agreement.
- (d) Notice. Franchisee must give written notice to Franchisor of its exercise of its option to renew at least six (6) months prior to the end of the first term, or at least six (6) months prior to the end of the first term of any renewal thereof.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, a franchisee has the right to automatically renew their franchise agreement for additional four-year periods, provided certain conditions are met. To renew, the franchisee must have satisfactorily performed all obligations under the existing agreement. The agreement must be in full force and the franchisee must not be in breach of any terms at the end of the current term.
As part of the renewal, the Coffee News franchisee must agree to comply with the franchisor's then-current franchise agreement. The franchisor will provide the franchisee with a copy of the updated agreement, which the franchisee must execute at least three months before the expiration of the current agreement. Notably, the franchisee will not be required to pay an additional deposit upon renewal.
To initiate the renewal process, the Coffee News franchisee must provide written notice to the franchisor of their intent to renew. This notice must be given at least six months before the end of the current term or any renewal term. This ensures that both parties have ample time to prepare for the continuation of the franchise relationship under the new agreement.