What is the franchisee's obligation if they desire to put Coffee News franchises into operation?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
must be made in the following manner:
- $ 500.00 is to be paid before draft of the Franchise agreement
- $ 9,400.00 is to be paid upon signing of the Franchise agreement
- $ 9,900.00 TOTAL
All initial fees and payments owed by franchisees shall be due in full upon our completion of all pre-opening obligations under the franchise agreement.
- 2.1.2 In addition to the publication of hardcopy format of Periodical, Franchisee shall have the option to publish the digital format of the Periodical ("Coffee News Online"). 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, Franchisee needs to pay for additional $1,000.00 to us to obtain such extension and hold Franchisee's area for such one or more months before Franchisee pays the full amount due under the Agreement.
- 2.1.4 Weekly Fees. For the first Franchise granted to Franchisee, weekly payments of:
- 2.1.4.1 for hardcopy Periodical, $80 per week beginning upon the conclusion of the Initial Period. In the case of multiple franchises granted to Franchisee under separate licensing agreements, weekly payments of $25 per week for each additional franchise purchased, to be charged for each week beginning after the first nine (9) months of Franchisee's operation in accordance with Schedule A.
- 2.1.4.2 for Coffee News Online Basic Service (as later identify and defined in Paragraph 4.5.1), $25.00 (USD) per week.
- 2.1.4.3 for Coffee News Online Premium Service (as later identified and defined in Paragraph 4.5.2), $50.00 (USD) per week.
- 2.1.4.4 prices for all other countries in addition to the U.S. and Canada shall be based on USD conversion to the respectful local currencies.
- 2.1.5 Additional Franchises. For any additional franchises granted to Franchisee under a separate licensing agreement, a non-refundable deposit of $7,000.00 to be paid in accordance with Schedule A. However, following the end of the initial term of this Agreement, Franchisee shall pay a non-refundable deposit equal to the then prevailing rate for new franchisees to purchase an additional franchise.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, franchisees have several obligations when operating their franchises. Franchisees must pay all initial fees and payments in full upon completion of Coffee News' pre-opening obligations. For additional franchises, a non-refundable deposit of $7,000.00 is required, as detailed in Schedule A.
Additionally, franchisees must adhere to weekly fee schedules. For the first hardcopy Coffee News franchise, the weekly fee is $80, starting after the initial period. If a franchisee operates multiple franchises under separate agreements, the weekly fee is $25 for each additional franchise, beginning after the first nine months of operation, as specified in Schedule A. For Coffee News Online, the weekly fees are $25.00 for the Basic Service and $50.00 for the Premium Service.
Moreover, franchisees are obligated to purchase printing services from Coffee News Printing, LLC in Bangor, Maine, for a minimum of one year from the agreement date. After this period, they have the option to use another print shop. Franchisees must also comply with all laws and regulations applicable to social media use, refraining from defaming, harassing, or infringing on intellectual property rights. They must ensure all posts are truthful and not misleading, and they must follow the guidelines in the Coffee News Social Media Policy.