Does Coffee News guarantee my note, lease, or obligation associated with any financing plan?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
Although we offer direct and indirect financing, we do not guarantee your note, lease, or obligation associated with any financing plan. See Item 22, Coffee News License Agreement as Exhibit A for a specimen copy of the Promissory Note.1
Source: Item 10 — Financing (FDD pages 16–17)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, Coffee News does not guarantee any financial obligations a franchisee may incur. Specifically, Coffee News will not guarantee a franchisee's note, lease, or any other obligation associated with a financing plan.
This disclaimer is standard practice in the franchise industry. It means that if a franchisee takes out a loan or lease to finance their Coffee News business, they are solely responsible for repaying that debt. Coffee News will not step in to cover the payments if the franchisee defaults. This is a critical point for prospective franchisees to understand, as it highlights the importance of careful financial planning and risk assessment before investing in a Coffee News franchise.
While Coffee News does offer direct and indirect financing options, this does not imply any guarantee of a franchisee's financial obligations. Franchisees should carefully review the terms and conditions of any financing plan and seek professional financial advice to ensure they can meet their repayment obligations. Understanding this policy is crucial for franchisees to manage their financial risks effectively and avoid potential financial distress.