How does the Coffee News franchisee's obligations regarding site selection (Item 9) relate to the potential postponement of the opening date and associated fees (Item 7)?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise unit(s) from time to time. In the event that you notify us that you wish to revise the start date of business and postpone it by one month or more subsequent to your receipt of the initially executed franchise agreement, you need to pay for additional $1,000.00 to us to obtain such extension and hold your proposed licensed area for such one or more months before you pay the full amount due under the agreement. All fees are non-refundable.
In addition to the above initial fees applicable to the hard copy Periodical, if you choose to add the Coffee News Online feature, a one-time enrollment fee to participate in the amount of $100.00 shall be paid upon enrollment.
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the franchisee's site selection is directly related to the potential postponement of the business's start date and associated fees. Coffee News states that all site locations are resolved before the franchise agreement is signed. This pre-agreement resolution of site selection impacts the franchisee because if they wish to revise the start date of the business and postpone it by one month or more after receiving the executed franchise agreement, they must pay Coffee News an additional $1,000.00 to hold the licensed area. This fee is required before the franchisee pays the full amount due under the agreement.
This policy means that once a franchisee commits to a location and signs the agreement, any delay in starting the business incurs a fee. The $1,000 postponement fee acts as a penalty for delaying the opening, even though the site has already been secured. This fee is in addition to the initial franchise fee of $9,900.00, with $500.00 allocated for document preparation, and any fees for additional franchises at $7,000.00 each.
For a prospective Coffee News franchisee, this highlights the importance of being certain about the readiness to launch the business once the agreement is signed and the location is secured. Any unforeseen delays after signing can result in additional costs. Franchisees should carefully consider their timeline for preparations, including sales of advertisements and arrangements with printers and restaurants, to avoid incurring the postponement fee. Since Coffee News resolves site locations before the agreement, franchisees should ensure they are fully prepared to proceed promptly once the agreement is finalized to avoid the $1,000 postponement fee.