When are initial fees and payments due for a Coffee News franchise?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
All initial fees and payments owed by franchisees shall be due in full upon our completion of all pre-opening obligations under the franchise agreement.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, all initial fees and payments are due in full upon the completion of all pre-opening obligations by Coffee News under the franchise agreement. This means a prospective franchisee will not be required to pay the initial franchise fee until Coffee News has fulfilled their responsibilities, such as providing training, site selection assistance, and other support services outlined in the franchise agreement. This arrangement can be beneficial for franchisees as it ensures that Coffee News is committed to providing the necessary support before receiving payment.
In addition to the initial franchise fee, Coffee News franchisees may encounter other fees. For instance, there is a one-time enrollment fee to participate in the publication of Coffee News Online, amounting to $100.00 for Chil Consulting and $75.00 for Shadowfox Design, which is payable upon enrollment. Furthermore, if a franchisee wishes to postpone the start date of their business by one month or more, they must pay an additional $1,000.00 to Coffee News to secure the extension and hold their territory. These additional fees should be carefully considered by prospective franchisees as part of their initial investment.
Coffee News also charges weekly fees. For the first franchise, the weekly fee for the hardcopy periodical is $80, starting after the initial period. If a franchisee owns multiple Coffee News franchises, the weekly fee is $25 per additional franchise, beginning after the first nine months of operation. For Coffee News Online, the weekly fees are $25.00 for the Basic Service and $50.00 for the Premium Service. These recurring weekly fees are an important factor in the ongoing operational costs of a Coffee News franchise and should be factored into the franchisee's financial projections.
It is important to note that failure to make payments, including the deposit for additional franchises or weekly fees, according to Schedule A, for a period of sixty (60) days from the due date, may result in the loss of all franchises and termination of the periodical supply, at Coffee News's discretion. This highlights the importance of maintaining timely payments to avoid potential penalties and loss of the franchise. Prospective franchisees should carefully review Schedule A and understand the payment terms and conditions to ensure compliance and avoid any disruptions to their Coffee News business.