What interest rate does Coffee News charge on financed franchise territory purchases?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
t Applicable | Not Applicable |
ITEM 10
FINANCING
After one year under your agreement, we may finance additional purchases of franchise territories through Coffee News USA, Inc. at competitive rates and terms pursuant to a Promissory Note. If you want to buy more than one franchise, we may finance for up to three more franchises initially as long as you have good credit and net worth of at least $100,000.00. We also accept all major charge cards in payment. Interest will be at 5% APR (Annual Percentage Rate). The term will vary from two to five years based on the amount borrowed and the ability to pay based on the negotiations and a review of a personal financial statement.
There is no prepayment penalty. We will hold any such licensed rights to the licensed territories granted under the Coffee News License Agreement as security until you have paid your Promissory Note in full. There are no waivers of your legal rights and you are not barred from asserting a defense against us. We have no current practice or interest to sell, assign or discount to a third party all or part of the financing arrangement. If you do not pay on time, you hereby agree that Coffee News can call the loan and demand immediate payment of the full outstanding balance and obtain court costs and attorney's fees if a collection action is necessary. If Publisher / Debtor is a corporation, professional corporation, partnership, limited liability partnership, or a limited liability company, a Guarantee of Performance by the Principal stockholder(s), general partner(s), or member(s), as the case may be, must be executed.
For those with excellent credit, as evidenced by a credit report from Equifax, Experian or Transunion or similar credit rating agencies in other countries, and with verifiable extensive advertising or similar sales experience including entrepreneurial management experience of at least 2 years, you may be eligible for full funding for the purchase of a minimum of four or more franchises, subject to the initial payment of the training fee as more fully explained in Item 11. You will be required to attend the next Coffee News College at the time of purchase, and you will be required to use the printing services of Coffee News Printing, Inc. during the term of the loan. The interest rate will be 5% simple interest with weekly payments for principal and interest for up to 48 months and the weekly fees beginning at the start of the fourth month under the agreement by credit or debit card or electronic funds transfer in accordance with Item 6, (Other Fees).
Although we offer direct and indirect financing, we do not guarantee your note, lease, or obligation associated with any financing plan. See Item 22, Coffee News License Agree
Source: Item 10 — Financing (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, Coffee News USA, Inc. may finance additional franchise territory purchases after one year under the agreement. The interest rate is set at 5% APR (Annual Percentage Rate). The term length for the loan will vary between two to five years, depending on the amount borrowed and the franchisee's ability to pay, which is determined through negotiations and a review of a personal financial statement. There is no prepayment penalty associated with these loans. Coffee News will hold the licensed rights to the licensed territories as security until the Promissory Note is paid in full.
For franchisees with excellent credit and at least two years of verifiable advertising, sales, or entrepreneurial management experience, Coffee News may offer full funding for the purchase of a minimum of four franchises. This financing option also carries a 5% simple interest rate, but with weekly payments for principal and interest for up to 48 months. These weekly fees begin at the start of the fourth month under the agreement and are paid via credit or debit card or electronic funds transfer.
It is important to note that Coffee News does not guarantee any notes, leases, or obligations associated with any financing plan. If a franchisee fails to make timely payments, Coffee News has the right to call the loan and demand immediate payment of the full outstanding balance, including court costs and attorney's fees if a collection action is necessary. If the franchisee is a corporation, partnership, or LLC, a Guarantee of Performance by the principal must be executed.