Is the Coffee News franchisor liable for expenses incurred in connection with the establishment and maintenance of the franchisee's business?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
when due, all expenses of Franchisee's franchised business, including, but not limited to all taxes and levies connected with the said franchised business and any income arising therefrom. Franchisor shall not be liable for any such expenses, taxes, levies or disbursements otherwise paid or incurred in connection with the establishment and maintenance of the aforesaid business.
- 8.13 Indemnity. Franchisee will indemnify Franchisor and its employees and hold them harmless from and against all losses, claims, actions, damages, liabilities and expenses, including attorneys fees, arising from loss of life, personal injury, damage to property or any other loss or injury suffered by F
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the franchisor is not liable for any expenses, taxes, levies, or disbursements paid or incurred by the franchisee related to establishing and maintaining their Coffee News business. The franchisee is solely responsible for promptly paying all expenses associated with their franchised business, including all applicable taxes and levies on income generated.
This means that franchisees must cover all costs associated with running their Coffee News franchise, such as office supplies, advertising sales materials, and any other operational expenses. They cannot seek reimbursement or expect Coffee News to cover these costs. This is a standard arrangement in franchising, where franchisees operate as independent business owners.
Furthermore, the franchisee is not authorized to make any financial commitments or representations on behalf of Coffee News. This reinforces the independent contractor status of the franchisee and ensures that Coffee News is not held responsible for any obligations created by the franchisee. Franchisees must be diligent in managing their finances and ensuring they meet all their financial obligations related to the business.