What happens to Coffee News franchises when fees are not paid?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
The Weekly fee is more fully explained in Item 5 of the Franchise Disclosure Document.
Initial fees and payments will be due upon Franchisor's completion of all pre-opening obligation.
- 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 Coffee News's 2025 Franchise Disclosure Document, failure to make payments can have significant consequences for franchisees. Specifically, if a franchisee fails to pay either the deposit for additional franchises or the weekly fees as outlined in Schedule A for a period of sixty (60) days from the due date, Coffee News has the option to take action.
This action may include the loss of all franchises held by the franchisee. Additionally, Coffee News can terminate the franchisee's receipt of the Periodical, which is a core component of the Coffee News business model. This means that consistent and timely payment of fees is critical for maintaining the franchise and receiving the necessary materials to operate the business.
This policy underscores the importance of managing cash flow effectively as a Coffee News franchisee. Franchisees should ensure they have sufficient financial resources to cover ongoing fees, as a delay of just over two months can lead to the termination of the franchise agreement and loss of all associated rights. This highlights the financial risks involved and the need for careful planning and budgeting.