What happens to a Coffee News franchisee's rights upon termination of the franchise agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.1 Effect Upon Franchisee's Rights. Upon termination of this Agreement for any reason, all of Franchisee's rights hereunder shall forthwith cease and Franchisee shall not thereafter publish or use the Periodical or any part thereof or the system, names and marks associated with the Periodical in any manner whatsoever.
- 14.2 Continuation of Franchisor's Rights. Upon termination of this Agreement for any cause whatsoever, all rights, title and interest in and to the Periodical shall remain with Franchisor as holder of an exclusive license covering the United States.
- 14.3 Return of Materials. Upon termination of this Agreement for any reason, Franchisee shall return the Operations Manual, all printed and working copies of the Periodical then in existence plus all advertiser lists, present advertiser identities, telephone numbers and addresses, together with all files and records pertinent to such customers in the licensed area, monthly sales records up to the date of termination, all camera-ready artwork in connection with the Periodical, holders and all printed back issues.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, if the franchise agreement is terminated for any reason, the franchisee's rights immediately cease. The franchisee is prohibited from publishing or using the Coffee News periodical, or any part of it. They also cannot use the Coffee News system, names, and marks in any way.
Upon termination, all rights, title, and interest in the Coffee News periodical remain with the franchisor, as the holder of an exclusive license covering the United States. This means the franchisee loses all rights to operate under the Coffee News brand and utilize its associated intellectual property.
Additionally, the franchisee must return specific materials to Coffee News. This includes the operations manual, all printed and working copies of the periodical, advertiser lists (including present advertiser identities, telephone numbers, and addresses), all files and records pertinent to such customers in the licensed area, monthly sales records up to the date of termination, all camera-ready artwork related to the periodical, holders, and all printed back issues. This ensures that Coffee News regains control over all aspects of the business and can seamlessly continue operations in the territory, either directly or through a new franchisee.