What is the Coffee News franchisor's obligation regarding territory overlap?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
Responsibility for the sale of advertisements rests solely with you.
- Prior to purchasing any territories and to signing an agreement with us and to paying the Initial franchise fees, you and we will agree on the boundaries of your exclusive distribution territory that will optimally have a population of 25,000 to 50,000 total and 25 to 40 active restaurants (Franchise Agreement Section 1.1). Since no territory may overlap another, we will research the territory that you wish to service to determine if all or part of it is currently serviced by us or any of our franchises. We usually approve an area where you wish to publish if it does not overlap another where an existing publisher operates. We will also research population and commerce figures to determine the number of people and the number of restaurants that are contained within the proposed territory. This population/restaurant guideline is based on discussions with existing franchises in the U.S. and Canada and considers information from our 5 company-owned franchises. Upon signing the franchise agreement, you will have exclusive rights to distribute your editions of Coffee News within the agreed territory. It is important to note that you may solicit and accept advertisements from any source inside or outside your territory since the agreement limits only your distribution rights.
1 A sample Promissory Note is attached to Coffee News License Agreement as Schedule B.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 17–21)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the franchisor is responsible for ensuring that franchise territories do not overlap. Before a prospective franchisee purchases territories, Coffee News will research the requested territory to confirm it is not already serviced by the franchisor or another franchisee. Coffee News typically approves a territory if it does not overlap with an existing publisher's territory.
Coffee News also researches population and commerce figures to determine the number of people and restaurants within the proposed territory. This guideline is based on discussions with existing franchisees and information from Coffee News's five company-owned franchises. Upon signing the franchise agreement, the franchisee gains exclusive rights to distribute Coffee News editions within the agreed territory.
It is important to note that while distribution rights are exclusive, franchisees can solicit and accept advertisements from any source, regardless of location. Coffee News will not finalize the franchise agreement or accept initial fees until the specific territories are agreed upon.