Does Coffee News impose any restrictions on what franchisees must place on their managerial staff?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
As the owner of the franchise(s), you are responsible for the compliance of all employees with the terms and conditions of the Franchise Agreement including your manager, on- premises supervisor or minority stockholder, if a company. If the franchisee is a company, there is no minimum equity interest required that the on-premises supervisor must have in the company. We do not impose any restriction that you must place on your managerial staff. You may, however, require a non-compete of all employees and a non-disclosure of trade secrets.
We place no other limitations or restrictions on your staff other than those contained in the Item 17. We do not require a personal guaranty of the performance.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 24–25)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, Coffee News does not impose any restrictions on what franchisees must place on their managerial staff. However, as the owner of the franchise, the franchisee is responsible for the compliance of all employees with the terms and conditions of the Franchise Agreement, including the manager.
While Coffee News does not mandate specific restrictions, franchisees may require a non-compete agreement and a non-disclosure agreement of trade secrets from all employees. This allows franchisees to protect their business interests and confidential information.
Beyond these potential agreements, Coffee News places no other limitations or restrictions on the franchisee's staff, except those outlined in Item 17 of the Franchise Disclosure Document. This provides franchisees with flexibility in managing their staff while ensuring compliance with the broader terms of the franchise agreement.