What happens if the Coffee News franchisee fails to pay weekly fees?
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 the 2025 Coffee News Franchise Disclosure Document, if a franchisee fails to make payments for additional deposits or weekly fees, there could be serious repercussions. Specifically, if a Coffee News franchisee fails to make payments in accordance with Schedule A for a period of sixty (60) days from the due date, Coffee News has the option to terminate the franchise agreement.
In addition to the potential loss of the franchise, Coffee News also has the option to terminate the franchisee's receipt of the Periodical. This means that the franchisee would no longer receive the Coffee News publication, which is essential for operating the business.
It is important to note that these actions are at the discretion of Coffee News, and may be prohibited by law in some jurisdictions. Prospective franchisees should carefully review Schedule A and Item 5 of the Franchise Disclosure Document, which provides a more detailed explanation of the weekly fees, to fully understand the payment obligations and potential consequences of non-payment.