What happens if a Coffee News franchisee fails to make a payment?
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 Coffee News's 2025 Franchise Disclosure Document, failure to make payments can lead to significant repercussions. Specifically, if a franchisee fails to pay either the deposit for additional franchises or the weekly fees, and this non-payment continues for sixty (60) days from the due date, Coffee News has the option to take serious action.
This action includes the potential loss of all franchises held by the franchisee and the termination of the franchisee's right to receive the periodical. This means that consistent and timely payments are crucial for maintaining the franchise agreement and continuing operations. The weekly fee itself is further detailed in Item 5 of the Franchise Disclosure Document.
For a prospective Coffee News franchisee, this underscores the importance of carefully managing finances and ensuring that all payments are made on time. It also highlights the need to understand the terms outlined in Schedule A, which likely specifies the amounts and due dates for these payments. Failure to do so could result in the loss of the franchise and the cessation of periodical supply, effectively shutting down the business.