If a Coffee News franchisee renews their agreement, is there an additional deposit required?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Renewal Terms. The Franchisee hereby agrees that upon renewal, the Franchisee shall comply with the then current Coffee News Franchise Agreement, except that there shall be no additional deposit from the Franchisee. Franchisor shall furnish the Franchisee with a copy of Franchisor's then current Franchise Agreement (and related agreements), which Agreement the Franchisee must execute no later than 3 months prior to the expiration of this Agreement.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, a franchisee is not required to pay an additional deposit when renewing their franchise agreement. The franchisee has the right to automatically renew the agreement for subsequent four-year periods, provided they have met certain conditions.
These conditions include the franchisee's satisfactory performance of their obligations under the agreement, the agreement being in full force at the end of its term, and the franchisee not being in breach of any terms. The franchisee must also agree to comply with the then-current Coffee News Franchise Agreement, although no additional deposit is required.
To initiate the renewal, the franchisee must provide written notice to Coffee News at least six months before the end of the current term. Coffee News will then furnish the franchisee with a copy of the current Franchise Agreement, which the franchisee must execute no later than three months before the expiration of the existing agreement. This ensures a smooth transition into the renewed term without additional financial burden in the form of a new deposit.