What happens if a Coffee News franchisee does not pay on time?

According to Coffee News's 2025 Franchise Disclosure Document, if a franchisee does not pay on time, Coffee News can call the loan and demand immediate payment of the full outstanding balance. Additionally, Coffee News can obtain court costs and attorney's fees if a collection action is necessary.

To secure the payment of the Promissory Note, the franchisee grants Coffee News all licensed rights to the territory. If the franchisee fails to pay interest, principal, or any other amount due, and the failure remains uncured for more than five days (with no grace period for defaults under the Note or Franchise Agreement), the entire debt becomes immediately due. Coffee News then has the right to realize upon the security granted, including the power to sell the franchise.

This clause ensures that Coffee News has strong recourse in case of non-payment, protecting their financial interests by allowing them to quickly recover outstanding amounts and reacquire the franchise rights. Prospective franchisees should be aware of these terms and ensure they have a solid financial plan to meet their obligations to avoid these penalties.