What is the Coffee News franchisee's obligation regarding pre-opening obligations?

According to the 2025 Coffee News Franchise Disclosure Document, a franchisee's obligation regarding pre-opening requirements is to pay all initial fees and payments in full. These payments are due upon Coffee News's completion of all pre-opening obligations as outlined in the franchise agreement. This means that the franchisee is not obligated to remit these payments until Coffee News has fulfilled its responsibilities in preparing the franchisee to open their business.

This arrangement is fairly common in franchising, as it ensures that the franchisor is motivated to provide the necessary support and resources to get the franchisee up and running. It also protects the franchisee by ensuring they don't pay for services or support that are not delivered. The specific pre-opening obligations that Coffee News must fulfill are detailed in the franchise agreement, which a prospective franchisee should review carefully.

It is important for potential Coffee News franchisees to understand exactly what constitutes the completion of pre-opening obligations. This may include items such as site selection assistance, training, providing operations manuals, and other forms of support. Franchisees should confirm with Coffee News a detailed list of these obligations and a timeline for their completion to ensure clarity and avoid potential disputes later on.