When can the Coffee News franchisor adjust weekly fees?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Renewal Terms. The Franchisee hereby agrees that upon renewal, the Franchisee shall comply with the then current Coffee News Franchise Agreement, except that there shall be no additional deposit from the Franchisee. Franchisor shall furnish the Franchisee with a copy of Franchisor's then current Franchise Agreement (and related agreements), which Agreement the Franchisee must execute no later than 3 months prior to the expiration of this Agreement.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the franchisor can adjust weekly fees when the franchisee renews their agreement. Specifically, upon renewal for subsequent four-year periods, the franchisee must comply with the then-current Coffee News Franchise Agreement. The franchisor will furnish the franchisee with a copy of the current agreement, which the franchisee must execute no later than 3 months prior to the expiration of the existing agreement.
This means that while the weekly fees are set during the initial term of the agreement, they are subject to change at the time of renewal. This is a fairly standard practice in franchising, as it allows the franchisor to adapt to changing market conditions and adjust fees accordingly.
For a prospective Coffee News franchisee, this implies that the financial terms of the franchise, including weekly fees, could be different upon renewal. It is important to carefully review the then-current franchise agreement provided by Coffee News prior to renewing to understand any changes in fees or other terms. Franchisees should factor in potential fee adjustments into their long-term financial planning and assess the potential impact on their profitability.