Is the initial franchise fee for Coffee News 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 agreement. All fees are non-refundable.
In addition to the above initial fees applicable to the hard copy Periodical, if you choose to add the Coffee News Online feature, a one-time enrollment fee to participate in the amount of $1
Source: Item 5 — Initial Fees (FDD page 10)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the initial franchise fee is non-refundable. Item 5 states that all fees are non-refundable. The initial franchise fee is $9,900 for the first franchise, with $500 of that amount due for document preparation upon signing the initial franchise agreement. The $500 will be deducted from the $9,900 total. For each additional franchise, a fee of $7,000 is due at the time of signing the agreement.
In addition to the initial franchise fee, if a franchisee chooses to add the Coffee News Online feature, a one-time enrollment fee of $100 must be paid upon enrollment. If a franchisee wishes to postpone the start date of their business by one month or more after receiving the initially executed franchise agreement, they must pay an additional $1,000 to obtain the extension and hold their proposed licensed area.
Item 7 also states that all fees mentioned in the document are non-refundable. This means that a prospective Coffee News franchisee should be certain of their decision before paying any fees, as they will not be able to get their money back if they change their mind. This is a fairly standard practice in the franchise industry, as the franchisor incurs costs in evaluating and setting up new franchisees.