What is the Coffee News franchisee's obligation regarding the payment of weekly fees?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, franchisees are obligated to pay weekly fees. For the initial franchise, the weekly fee for the hardcopy periodical is $80, starting after the initial period. If a franchisee has multiple franchises, the weekly fee is $25 for each additional franchise, beginning after the first nine months of operation, as detailed in Schedule A. For Coffee News Online Basic Service, the weekly fee is $25, while the Premium Service is $50 per week. Fees for countries outside the U.S. and Canada are based on USD conversion to local currencies.
Failure to pay these weekly fees, or the deposit for additional franchises, within 60 days of the due date, as outlined in Schedule A, may result in the loss of all franchises and termination of the periodical supply, at Coffee News's discretion. The FDD also notes that the timing of weekly licensing fees is designed to be generous, allowing franchisees ample time to establish their region before reaching maximum licensing fees.
Prospective Coffee News franchisees should note that these weekly fees are a recurring expense that will impact their profitability. Understanding the terms and conditions around these fees, including when they start and what services they cover, is crucial for financial planning. Additionally, franchisees should be aware of the potential consequences of late or non-payment, which could include losing their franchise.