What happens if the Coffee News franchisee's franchises/licenses are not in 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 provide franchisees with ample time to get their entire region in operation before reaching maximum licensing fees. This suggests that Coffee News expects franchisees to actively develop and operate their territories. The document does not explicitly state what happens if a franchisee's locations are not in operation. However, it does mention 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 their licensing fees do not increase.
In the event a franchisee decides to sell their franchises/licenses, the new buyer will pay Coffee News a transfer fee of $2,900.00 and will pay licensing fees based on the number of Coffee News publications in operation at the time of the sale. This indicates that the value of the franchise is tied to the number of operating publications.
While the FDD does not directly address the consequences of franchises/licenses not being in operation, it implies that active operation is expected and incentivized. A prospective franchisee should inquire with Coffee News about specific performance expectations, potential penalties for underperformance, and any support or resources available to help franchisees successfully launch and operate their publications.