factual

What is the Coffee News franchisee's obligation regarding errors in advertisements?

Coffee_News Franchise · 2025 FDD

Answer from 2025 FDD Document

It is acknowledged that the franchisees are responsible for their own content posted or published through the social

media and are responsible for complying with all laws and regulations and third-party site terms and conditions. Coffee News will not have any liability for the Franchisee's use of social-media sites. Additionally, Coffee News does not have responsibility or obligation for monitoring Franchisee's compliance with such laws, regulations, and third-party terms and conditions. Any approval by Coffee News of the use of social media sites or monitoring thereof does not constitute a representation that the franchisees are in compliance with these laws, regulations or terms and conditions. The franchisees are responsible for monitoring their own employees, representatives, agents, etc. to ensure compliance with these requirements set forth in the Policies. A copy of the Coffee News Social Media Policy is attached hereto as Schedule D to this Agreement and all content of the Policy is incorporated as part of the Agreement.

Source: Item 23 — Receipts (FDD pages 36–118)

What This Means (2025 FDD)

Based on the 2025 Coffee News Franchise Disclosure Document, franchisees are responsible for the content they post or publish through social media. This includes complying with all applicable laws and regulations, as well as the terms and conditions of any third-party sites they use. Coffee News itself does not assume liability for a franchisee's use of social media, nor does it have an obligation to actively monitor a franchisee's compliance with these external rules. Any approval by Coffee News of a franchisee's social media activities does not guarantee that the franchisee is actually compliant with all relevant laws and regulations. Franchisees are expected to oversee their own employees, representatives, and agents to ensure they adhere to these policies. The Coffee News Social Media Policy, outlined in Schedule D of the agreement, is subject to change as technology evolves.

In practical terms, this means a Coffee News franchisee must be vigilant about the accuracy and legality of their online advertising and social media posts. They need to ensure that their content is not misleading, defamatory, or in violation of any copyright or privacy laws. It is also the franchisee's responsibility to stay updated on changes to social media platform policies and relevant advertising regulations.

This requirement places a significant burden on the franchisee, as they are essentially responsible for their own compliance and risk management in the digital space. Unlike some franchise systems where the franchisor provides extensive oversight and pre-approved content, Coffee News franchisees have a greater degree of autonomy—and therefore, greater responsibility—for their online presence. Franchisees should exercise caution and seek legal counsel if they are unsure about the legality or appropriateness of their online advertising content.

Prospective Coffee News franchisees should carefully review Schedule D, the Coffee News Social Media Policy, to fully understand their obligations and potential liabilities related to online advertising and social media. They should also inquire about any training or resources Coffee News provides to help franchisees navigate these complex issues.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.