Does the Coffee News franchisor have the option to terminate the franchise if payments are not made?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.2 Failure to Make Payment. Unless otherwise prohibited by law, failure to make payment of either the deposit for additional or weekly fees in accordance with Schedule A for a period of sixty (60) days from the due date may result in the loss of all Franchises and termination of receipt of the Periodical by Franchisee, at the option of Franchisor.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, Coffee News has the option to terminate the franchise agreement if payments are not made. Specifically, if a franchisee fails to make payments for additional or weekly fees as outlined in Schedule A for 60 days from the due date, Coffee News, at its discretion, can terminate the franchise and stop providing the periodical.
This clause in the franchise agreement protects Coffee News from franchisees who do not meet their financial obligations. It also motivates franchisees to maintain timely payments to avoid potential termination and loss of their franchise. The weekly fee itself is explained in Item 5 of the FDD.
It is important for prospective franchisees to understand the payment terms and ensure they have sufficient capital to meet these obligations. Failure to do so could result in the loss of their franchise. Franchisees should carefully review Schedule A and Item 5 of the FDD to fully understand the weekly fee structure and payment schedule.