Are the initial fees for a Coffee News franchise refundable?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 5**
INITIAL FRANCHISE FEE
You must pay an initial franchise fee of $9,900.00 for the first franchise that is due upon signing the initial franchise agreement, $500.00 of which must be paid to us for document preparation including without limitation draft of the franchise agreement. The $500.00 shall be deducted from $9,900.00 upon signing the initial franchise agreement. For this, you will receive weekly copy within 14 days of signing the agreement with additional copy mailed in 8-week increments (no later than 5 business days prior to the end of the following 8-week period) which effectively represents reimbursement for weekly copy during the initial 3-month period of the agreement. Agreements may include up to the maximum 20 franchises permitted per publisher. A fee of $7,000.00 for each additional franchise is due at the time of signing the agreement for additional franchise(s). Upon our sole discretion, we may offer short term sales promotions to existing Publishers who wish to purchase additional franchise unit(s) from time to time. In the event that you notify us that you wish to revise the start date of business and postpone it by one month or more subsequent to your receipt of the initially executed franchise agreement, you need to pay for additional $1,000.00 to us to obtain such extension and hold your proposed licensed area for such one or more months before you pay the full amount due under the agr
Source: Item 5 — Initial Fees (FDD page 10)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the initial franchise fees are generally non-refundable. Specifically, the initial franchise fee for the first franchise is $9,900, a portion of which ($500) is allocated for document preparation. Additionally, a fee of $7,000 is required for each additional franchise purchased. These fees, along with other fees mentioned in the document, are explicitly stated as non-refundable.
If a prospective Coffee News franchisee chooses to postpone the start date of their business by a month or more after receiving the franchise agreement, they must pay an additional $1,000 to secure the extension and hold their licensed area. This postponement fee, like the initial franchise and additional franchise fees, is also non-refundable.
This non-refundable policy means that a potential Coffee News franchisee should carefully consider their decision before signing the franchise agreement and paying the initial fees. It's crucial to conduct thorough due diligence, review the FDD with a business advisor, and ensure they are fully prepared to proceed with the franchise before making any payments, as these fees will not be returned should they change their mind or encounter unforeseen circumstances.