What is the grace period for Coffee News franchise fees before rights are lost?
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, a franchisee has a 60-day grace period to make payments before potentially losing their franchise. Specifically, if a franchisee fails to pay either the deposit for additional franchises or the weekly fees as outlined in Schedule A, and this failure continues for 60 days from the due date, Coffee News has the option to terminate the franchise agreement and stop providing the Periodical. This policy applies unless otherwise prohibited by law.
This means that a prospective Coffee News franchisee needs to be diligent in managing their finances and ensuring timely payments. Failure to do so could result in the loss of their franchise. The 60-day period offers some leeway, but it's crucial to address any payment issues promptly to avoid termination.
In the franchise industry, it is common to have a grace period for payments, but the length can vary. Some franchisors might offer shorter grace periods, such as 30 days, while others might have similar or slightly longer periods depending on their policies and the laws in their jurisdiction. Franchisees should always be aware of the specific payment terms and conditions outlined in their franchise agreement to avoid any potential issues.