What does the initial investment for a Coffee News franchise include, besides the franchise fee?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
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YOUR ESTIMATED INITIAL INVESTMENT2
| 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 | | COFFEE NEWS ONLINE ENROLLMENT FEES | $0.00 - $100.00 | LUMP SUM | UPON ENROLLMENT | US | | POSTPONEMENT OF OPENING DATE | $0.00 - $1,000.00 | LUMP SUM | UPON REQUEST TO POSTPONE THE START DATE FOR ONE MONTH OR MORE | US | | TRAVEL AND LIVING | $500.00 | N/A | N/A | N/A | | EXPENSES IN | | | | | | TRAINING | | | | | | REAL ESTATE AND | N/A | N/A | N/A | N/A | | IMPROVEMENTS3 | | | | | | EQUIPMENT | N/A | N/A | N/A | N/A |
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| STANDS4 | $500.00 | AS | BY FIRST | LOCAL |
| INCURRED | PRINTING | VENDOR | ||
| SECURITY DEPOSITS, | N/A | N/A | N/A | N/A |
| UTILITY DEPOSITS, | ||||
| BUSINESS LICENSES | ||||
| MISCELLANEOUS | $250.00 | AS | BY FIRST | LOCAL VENDOR |
| OPENING COSTS5 | INCURRED | PRINTING | ||
| OPENING INVENTORY | N/A | N/A | N/A | N/A |
| ADVERTISING6 | N/A | N/A | N/A | N/A |
| ADDITIONAL FUNDS 7-- | N/A | N/A | N/A | N/A |
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 estimated initial investment ranges from $11,150 to $12,250, encompassing several expenditures beyond the initial franchise fee of $9,900. These additional costs include Coffee News online enrollment fees, which can range from $0 to $100, and potential postponement of opening date fees, also ranging from $0 to $1,000 if a franchisee requests to delay their start date by a month or more.
Further, the initial investment covers travel and living expenses during training, estimated at $500. Franchisees will also need to budget for stands to distribute the Coffee News periodicals, estimated at $500. The cost of these stands can vary depending on whether they are purchased from Coffee News USA at approximately $5.75 each (including shipping) or sourced locally. The estimate is based on a distribution network of 50 restaurants or businesses.
Finally, the initial investment includes miscellaneous opening costs, estimated at $250, to cover business cards, invoices, rate sheets, and other office supplies. It is important to note that the FDD indicates that real estate, improvements, equipment, security deposits, utility deposits, opening inventory, and advertising costs are not included in the initial investment, marked as 'N/A' in the table. The document also states that additional funds for the initial period are not included. Prospective franchisees should carefully review these figures with a business advisor to ensure they have sufficient capital for the start-up phase.