If a Coffee News franchisee terminates the agreement, how much notice is required?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| d. Termination by you. | Sections 13.3, 14.1, 14.3 | 120 days notice required. Deposit |
| Exhibit A | is nonrefundable. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 25–27)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, a franchisee is required to give 120 days' notice if they choose to terminate the franchise agreement. Additionally, any deposit made by the franchisee is nonrefundable upon termination.
This 120-day notice period allows Coffee News ample time to find a replacement franchisee for the territory, ensuring continuity of the Coffee News publication in that area. It also provides the franchisee time to properly wind down operations and transfer any necessary materials back to the company.
The nonrefundable deposit is a fairly standard practice in franchising, designed to compensate the franchisor for initial expenses incurred in setting up the franchise. Prospective franchisees should carefully consider this aspect, as they will not be able to recover this deposit if they decide to terminate the agreement, regardless of the reason for termination.
It is important for potential Coffee News franchisees to fully understand the terms and conditions regarding termination, including the notice period and the nonrefundable deposit, before entering into a franchise agreement. Consulting with a franchise attorney can help clarify these and other aspects of the agreement.