What happens if the Coffee News franchisee fails to pay deposit payments?
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 on time can lead to serious repercussions for the franchisee. Specifically, if a Coffee News franchisee fails to make a deposit for additional franchises or weekly fees as outlined in Schedule A for a period of 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. This means that the franchisee would no longer be authorized to operate their Coffee News business and would lose the rights associated with the franchise agreement.
It is important for prospective Coffee News franchisees to understand the payment terms and ensure they have sufficient capital to meet their financial obligations. Failure to do so could result in the loss of their franchise and the termination of their business operations. Franchisees should carefully review Schedule A of the Franchise Agreement to fully understand the payment schedule and potential consequences of late or missed payments.