When is the Coffee News Initial Franchise Fee due?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| INITIAL FRANCHISE FEE | $9,900.00 | LUMP SUM | $500.00 FOR US TO PREPARE THE AGREEMENT; AND BALANCE AT SIGNING OF AGREEMENT | US |
Source: Item 7 — Estimated Initial Investment (FDD pages 12–14)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the initial franchise fee of $9,900 is paid in two installments. First, $500 is due when the franchisee and Coffee News begin preparing the franchise agreement. The remaining balance is due when the agreement is signed.
This payment schedule is fairly typical in the franchise industry. It allows Coffee News to begin working with the franchisee and incurring expenses before the entire fee is paid. This also gives the franchisee some time to secure financing or otherwise prepare for the full investment.
Prospective franchisees should be aware of these payment deadlines and ensure they have sufficient funds available to meet them. Failure to pay on time could result in delays in the franchise opening or even termination of the franchise agreement.