What must happen before Coffee News will sign an agreement or require payment of initial fees?

According to Coffee News's 2025 Franchise Disclosure Document, before Coffee News signs a franchise agreement or requires payment of initial fees, the franchisee and Coffee News must agree on the specific territories the franchisee wishes to purchase. This agreement on territories is a prerequisite to formalizing the franchise relationship and initiating any financial obligations.

The process involves the prospective franchisee requesting specific areas where they wish to publish Coffee News. Coffee News will then determine the number of franchises that the area would represent based on guidelines detailed in Item 11.2 and Item 12 of the FDD. Coffee News researches the territory to ensure it does not overlap with existing franchisees and assesses population and commerce figures to determine the number of people and restaurants within the proposed territory. The document specifies that Coffee News usually approves an area if it does not overlap with another where an existing publisher operates.

This prior agreement on territory ensures that both Coffee News and the franchisee have a clear understanding of the market and distribution rights before entering into a binding agreement. This reduces the risk of future disputes over territory exclusivity and market potential. The FDD states that upon signing the franchise agreement, the franchisee will have exclusive rights to distribute their editions of Coffee News within the agreed territory, but they can solicit and accept advertisements from any source inside or outside their territory.