What is a Coffee News franchisee required to do to ensure their obligations are met for renewal?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
s Agreement shall commence upon execution hereof by all parties hereto and shall expire on ______ 31, 20____, subject to earlier termination pursuant to the terms of this Agreement.
- 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.
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 agreement for subsequent four-year periods, provided certain conditions are met. The franchisee must have duly performed all of their obligations under the agreement to the satisfaction of Coffee News. This indicates that the franchisee must consistently meet the standards and requirements set forth in the franchise agreement throughout its term.
Additionally, the franchise agreement must be in full force at the end of the current term, and the franchisee must not be in breach of any of its terms. This means that the franchisee must remain compliant with all aspects of the agreement, including operational standards, payment schedules, and adherence to Coffee News's policies. The franchisee must also agree to comply with the then-current Coffee News Franchise Agreement upon renewal, although there will be no additional deposit required. Coffee News will provide the franchisee with a copy of the updated agreement, which the franchisee must execute at least 3 months before the expiration of the current agreement.
Finally, the franchisee is required to provide written notice to Coffee News of their intent to renew the agreement at least six months prior to the end of the current term. This notification period allows Coffee News to plan for the renewal and ensures that the franchisee is committed to continuing the franchise. Failing to meet any of these conditions could result in the franchisee not being able to renew their Coffee News franchise agreement.