If a Coffee News franchisee purchases stands elsewhere, is there a charge for labels?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
d in detail in the operations manual (Franchise Agreement Section 7.2).
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- The design of the periodical stand is disclosed in the operations manual. The current suggested stand for Coffee News can be purchased for $5.25 each plus shipping and handling for a total of approximately $5.75 each from Coffee News USA or its preferred vendor (Franchise Agreement Section 7.3). If you opt to purchase stan
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 17–21)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, franchisees have the option to purchase stands from Coffee News USA or its preferred vendor for approximately $5.75 each, including shipping and handling. However, franchisees are not obligated to purchase stands from this source. If a franchisee chooses to buy stands from another source, Coffee News will provide labels for those stands.
The FDD specifies that Coffee News will charge a nominal fee for these labels. The term 'nominal charge' typically implies a small, symbolic fee that is not intended to be a significant source of revenue for the franchisor. It is designed to cover the franchisor's direct costs or to ensure that franchisees adhere to brand standards even when sourcing materials independently.
Prospective Coffee News franchisees should confirm the exact amount of the 'nominal charge' for labels with the franchisor. Understanding this cost is essential for budgeting and making informed decisions about where to source stands. Franchisees should also inquire about any specifications or requirements for the stands to ensure they meet Coffee News's standards and are compatible with the provided labels.