What is the Coffee News franchisee required to comply with upon renewal of the franchise agreement?
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 the 2025 Coffee News Franchise Disclosure Document, a franchisee has the right to automatically renew their agreement for subsequent four-year periods, provided certain conditions are met. To renew their Coffee News franchise agreement, the franchisee must have duly performed all obligations to the satisfaction of the Franchisor. Additionally, the existing agreement must be in full force at the end of its term, and the franchisee must not be in breach of any of its terms.
Upon renewal, the franchisee must comply with the then-current Coffee News Franchise Agreement. The franchisor will provide the franchisee with a copy of the current Franchise Agreement and related documents, which the franchisee must then execute no later than three months before the expiration of the current agreement.
To initiate the renewal process, the franchisee must provide written notice to Coffee News of their intent to exercise the renewal option 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 transition and that all necessary paperwork is completed in a timely manner.