What happens if the Coffee News franchisee is unable to put their franchises into operation?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | REGION | including | seasonal |
|---|---|---|---|
| Franc | chises: | including | 300301101 |
| Proje | cted Coffee News Franchises = | ||
| reade | acknowledged and understood that the Coffee News Online ers outside the Territory. However, the Franchisee's public e shall be restricted to his/her/its licensed Territory and resto serve communities beyond the Territory. Franchisor shall area served by Franchisee's online version through Franchise | cation of Co | ffee News |
| Onlin | no publicatio | n shall be | |
| made | all provide a | drop down | |
| 2. | DEPOSIT PAYMENT | ||
| Depo | sit: $_,000.00 due on or about 1, 20 | ||
| 3. | RETURN OF FRANCHISES | ||
| Franc | every six months, Franchisee has the option to retuchisee's Franchise(s) if Franchisee is unable to put such Franchisee's Franchises/ licenses are not in operation but tain possession of such Franchises, Franchisee may pay the | inchises into | operation. |
| If Fra | Franchisee | desires to | |
| 4. | WEEKLY LICENSING FEES | ||
| Feb | 1/ and on $ 80.0 | 0/wk | (1 |
| CN's) | |||
Please note: Timing of the weekly licensing fees is over-generous on purpose- to allow Franchisee more than enough time to get the entire region in operation well before Franchisee reaches his/her maximum licensing fees.
Also, if Franchisees are able to put more Coffee News publications in operation than Franchisee's licensing fees expect, that is to Franchisee's benefit only. Franchisee's licensing fees do not increase. In the event that Franchisee decides to sell Franchisee's Franchise
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the timing of weekly licensing fees is designed to be generous, providing franchisees with ample time to establish their entire region before reaching maximum licensing fees. The document does not explicitly state what happens if the franchisee is unable to put their franchise into operation. However, it does state that if franchisees are able to put more Coffee News publications in operation than their licensing fees expect, that is to the franchisee's benefit only, and the franchisee's licensing fees do not increase.
In the event that a Coffee News franchisee wishes to postpone the start date of their business by one month or more, they must pay an additional $1,000 to the franchisor to obtain such an extension and hold their area.
While the FDD does not directly address the scenario where a franchisee cannot commence operations, it does outline the fees and payment schedules, as well as the possibility of postponement. A prospective franchisee should inquire with Coffee News about specific policies or remedies related to a franchisee's inability to begin operations, including potential termination clauses or refund policies for initial fees.